Tag Archives: earnings

Facebook Will Put Ads Where Users Are

Author of “The Facebook Effect” David Kirkpatrick weighs in on Facebook’s earnings report with Emily Chang on Bloomberg Television’s “Bloomberg West.” (Source: Bloomberg)

Yahoo Turnaround Plan Hits Snag on Sales Forecast

Bloomberg senior markets correspondent Julie Hyman reports that CEO Marissa Mayer’s turnaround plan for Yahoo! is facing setbacks as the company’s second-quarter sales forecast may fall short of analyst estimates. She speaks on Bloomberg Television’s “In The Loop.”

Globalization And The Benefits Of A Global Economy – Infographic

Evaluation of globalization and the benefits of a world economy. This infographic considers: Mass Layoff Events, Manufacturing Nations GDP, Benefits from Insourcing, Total earnings from US multinationals and a Timeline of political events and policy. Continue reading

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Facebook Q2 Earnings – Infographic

This infographic sums up everything you need to know about Facebook’s first earnings report as a public company.

Source: Statista

Facebook Sales Growth is Lumpy and Slowing

Facebook Sales Growth is Lumpy and Slowing – Marketwatch Report

It is no secret that Facebook’s business model is limping compared to other social media sites. For the moment Facebook’s more or less only revenue source is advertising. Advertising has always had good and bad times and it is seasonal. LinkedIn, one of Facebook’s competitors has a business model that stands on multiple legs. LinkedIn offers advertising opportunities and subscriptions for different services and has therefore a much healthier and consistent revenue stream.

For Facebook it is mandatory that users, personal or business, accept and use Facebook as an advertising platform. Once the company is public, which will happen within the next few weeks, dependence on advertising money, and lots of it, will increase. Facebook is for many users the star in between all the social media sites. This status can quickly diminish when things get though as a public company. Yes, there will be some time given and criticism will be held off for a while, but as soon as the company is public, things will change. Facebook claims that the site will always be free. If that can really be delivered has to be seen. It is very well possible and likely that certain services, if not all, become paid services in the future.

According to the company, Facebook is used by 900 million people world wide. The huge number of users certainly has its reason in free usage of the site. Should some or all Facebook services become paid services, it will be interesting to see how these numbers change. Very likely that such a change will turn out to be one of Facebook’s consolidations down the road.

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Apple Earnings in a Nutshell – Infographic

Mashable, 04/25/2012

Google reporting numbers – 17% increase in profit!

Google was due to deliver earnings for the first quarter today. Expectations were high, but Larry Page announced, in my opinion, outstanding results.

Expected revenue was $6.3 billion, Google delivered $6.5 billion. Earnings per share turned out at $8.08 vs expected $8.11. Operating expenses rose from $1.84 billion to $2.84 billion. Google shares fell 5% right after the report.

In my opinion as a Main Street Analyst, this is an outstanding result with a rosy outlook. Google hired over 2,000 employees during the first quarter which, in my opinion, takes care of the sharp increase in operating expenses. Google does not hire just to fill offices, I trust there is substantial business potential behind this move. This, combined with paid-click growth and increased advertising prices allows a positive outlook on the company.

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