Facebook User Growth Is Tremendous
Facebook Inc. revenues for the first quarter have actually missed the expectations of analyst when they were revealed on 22nd April, FY15. However, despite missing on the target, the company has shown potential growth in the number of users. Now, the total number of active users on the social media platform is more than the overall population of the People’s Republic of China.
The social media giant has reported an earning when the records closed off 42 cents on each stock with revenues accumulating to $3.56 billion. This consensus has been made by Thomas Reuters. According to latest Facebook updates of data analytics firm FactSet, the social networking site has never come into the limelight because of its revenues.
The company’s earnings report turned out to be mayhem for the company since Facebook stocks experienced a decline of 1.5 per cent during the afterhours as soon as the report was released.
On an average when considering March 2015, the number of Daily active users for Facebook is said to be 936 million. This is almost a 17% increase when considering year over year basis. Moreover, this is far more that what StreetAccount had estimated earlier which was around 920.2 million.
"I think this is a fine quarter. It's a little bit shy on the top line, but when you dig into the details, what you see is that monthly active users did come in a little better than expectations," Stated Brean Capital's Sarah Hindlian
Facebook active users on monthly basis were said to be 1.44 billion for March according to the latest Facebook reports. This is estimated as a 13 per cent on a year over year basis. Moreover, the mobile active users for the month of March have been 1.25 billion. Both the digits have exceeded the estimates made by StreetAccount which were predicted to be 1.43 billion and 1.23 billion respectively.
The growth in the number of active users is a positive aspect for Facebook stock price that denotes that the company has potential to grow. The number of active users on FB is far more than any other social platform and they are constantly increasing which is a positive influence on the demand on this brand. Moreover, the growth is not just saturated to mobile or desktop users but it has been observed in all aspects making it a noteworthy achievement.
It is pretty astonishing that Facebook has not hit the mark this time where in the past it has never missed any earnings estimates. The company is on that point was revenues and growth has been fairly stable therefore minor shortcomings do not really count.
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