What the future holds for Mark Zuckerberg and Facebook

Facebook started the year with a quarterly profit of 642 million dollars (465 million euros), increased three fold from a year ago in the same period. And that despite the fact that the first quarter was when they announced the purchase of the popular messaging service WhatsApp and creator of virtual reality goggles Oculus. Investors focused to analyze the results more in its user base and revenues to assess the progress of the business, especially in mobile, which improved.

The company founded by Mark Zuckerberg in February announced the acquisition of WhatsApp for 19 Billion dollars and a few weeks after the Oculus for 2,000 million. A portion will be paid in cash. The two operations are examples of how far the CEO Mark Zuckerberg will go and his ambition and willingness to spend whatever it takes to protect Facebook dominance.

But these quarterly results also reflect the health of the worlds largest social network. Facebook increasingly a multimedia platform, invoiced 2,500 million (1,800 million euros) in the first quarter. A year ago it had revenues of 1,460 million. At the end of March it had 1,280 million monthly active users, up 15%, of which 1.010 million are from mobile. Six in ten connect to Facebook group of companies daily.

That is valuable because it allows Facebook to put higher prices on mobile advertising compared to the personal computer, it is able to achieve higher user involvement than its rivals. The ads also adapt better. The other point of interest is how Wall Street will exploit the revenue potential of Instagram.

Facebook shares are up 13% compared to when they presented results three months ago. Shares were even higher, at $72.6  in mid-March.

Before presenting the results, Facebook received the green light from the competition regulator in the U.S. to proceed with the purchase of Oculus. It is the first time the social platform purchased a device manufacturer. The company used the presentation of the results to announce that David Ebersman will leave the post of financial director on 1 June.

At this rate What the future holds for Mark Zuckerberg and Facebook is nothing but Green.

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Posted by Kiran Chaudhary on Apr 24 2014. Filed under Business, Latest News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.