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Monthly Archives: November 2014

Look Beyond Facebook’s Perceived Value to Find Growth

On October 28, Facebook (Nasdaq:FB) released its third-quarter 2014 earnings report announcing, for the three months ending September 30, that total revenue of $3.20 billion was generated, an increase of 59%, compared to $2.02 billion in 2013 the same quarter. The earnings release also give a margin of operations of 44%, or $1.40 billion, for the third quarter compared to 37%, or $736 million, in the third quarter the prior year, and net income of $806 million, up 90%, from $425 million for the third-quarter of 2013.

Other financial results are as follows:
• Revenue from advertising was $2.96 billion, a 64% increase from the same quarter last year.
• Mobile advertising revenue represented approximately 66% of advertising revenue for the third quarter of 2014, up from approximately 49% of advertising revenue in the third quarter of 2013.
• Payments and other fees revenue was $246 million, a 13% increase from the same quarter last year.

Back in 2012, in one of two posts I wrote on Facebook, I gave an assessment on what I felt as the upcoming dovetail phase in the tech IPO sector and how Facebook, as a newly-forming public corporation, and its stock, would be received in such a market. Since that time period till now, giving the current corporate and market conditions, my views on Facebook – purely as a tradable stock- remain unchanged. (more…)