Source Bloomberg
In the second quarter FB had 955 million monthly active users (MAU) up 29% year on
year, while mobile MAU were 545 million up 67% year on year. This shift to
mobile affected US ad impressions which were down 2% compared to global
impressions up 18%.
Decisive does not have a position in FB but I am impressed
by some of their initiatives such as sponsored stories, which is FBs response to
solving the mobile problem. These stories are basically user remarks about good
experiences they had with a product or service highlighted in
newsfeed (the main comment area). The beauty with this approach is that the comments look like they are
part of the service and do not look like ads which tend to be too small to fit
on a mobile screen. Sheryl Sandberg the COO commented that by the end of Q2
sponsored stories were generating over $1 million per day with half coming from
FB mobile. To put that in context revenue for the quarter was $1.184 billion at that run rate around 7% of revenue. They
also mentioned on the call that only half their current ads are social
suggesting more opportunity to grow these services.
As the stock heads below $25 and hopefully $20 investors
should begin to focus again on the opportunity and not on the hoodie.
Jason
By the way really enjoyed this social landmark picture from
FB. Picture shows the most checked in places on FB users have shared with friends. Loved it how Australia’s most checked in
location was a casino and New Zealand a rugby park!
Source Facebook
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Disclosure: Decisive has no
position.
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