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Gabelli Multimedia Trust Associate Portfolio Manager Larry Haverty, JMP Securities’ Mark Harding and FBN’s Shibani Joshi break down Facebook’s s...
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Saying that their mobile what does this boss and -- you what does that mean MA.
-- mobile a monthly active user -- their mobile active users thank you 543.
Million as of June 30 2012.
That's an increase of 67%.
Year over year that's got to be a nice.
Move at least are catching the I've investors yes -- a source.
I'm seeing a couple things again we're just dipping into this and number one challenge at FaceBook cast do you -- overcome this quarter is dispel concerns about slowing growth.
One of those factors is user engagement not just getting new users and we know that it's doing that 900 -- five million as at the ended the quarter.
That is up 29% year over year but it is also daily active engagement daily active users up 32% -- 562.
Million people on average per day.
And then also mobile again a huge growth factor here how they monetize this is -- -- be the issue but mobile active users 543.
Million.
An increase of 67%.
So what we're seeing -- traction at the top line.
More users but also being more engaged but again how they're able to turn that into dollars is that challenge and investors are looking away and we're digging in right yeah.
Area have every you keep digging and Larry -- -- -- multimedia trust has been digging in for quite some time he's been following a stock for awhile type.
Larry the big question today was how they'd absorb the bad news on Zynga they get down about 40% today on -- bad earnings yesterday.
Clearly a 5% jump right now after -- shows that that everybody was kind of low balling the figure based on Zynga -- it is bad news led to some good news being bright news for after hours figures.
Well I I think they the key thing with regard to FaceBook.
Is the issue of engagement.
-- -- platform in in the media.
If you get the eyeballs pretty soon you're gonna figure out a way to be able to charge for the I've also I wasn't really worried about the -- good numbers.
It looks like FaceBook kind of directed the traffic away from Zynga it looks like -- they perhaps had over reliance on -- when it was just getting started.
But there's basically a lot of ways for for FaceBook to.
Collect tolls and you have to remember this thing is like Coca-Cola it's -- global franchise I was just in Singapore and to buy -- you go into those cities.
And you you passed by these massive billboards from places like Coca-Cola and they say come look this up on FaceBook -- -- -- -- More small businesses using FaceBook so.
Facebook's going to be able to charge for the engagement and the stocks pretty reasonably priced I think it's gonna.
Just like everybody wanted to know about advertising and Robert -- looking at advertising for the quarter 992.
Million that represents 84%.
Of the total revenue that's -- 28%.
Increase quarter up year over year same quarter last year.
And I you know obviously Mark Zuckerberg -- there they're speaking right to investors here second paragraph and and you know it continues -- this -- and -- -- stay connected but.
They goes right to the -- -- saying.
You know that's why we're so focused on investing in our prior -- of mobile right up top mobile platform and social ads to help people have these experiences.
With their friends so he is a deadly addressing it issue of mobility and and by monetizing that for investors.
You look through the numbers -- -- out of seven net job loss on a GAAP basis there.
Their margins were at significantly -- more narrow than a year -- got 43% down from 53%.
As something us some folks will be looking -- cash on hand ten point two billion dollars or six billion dollars coming from the IPO but now last ten point two billion not --
