Facebook Inc (NASDAQ:FB) might have squandered a couple of billion dollars here and there in the past making acquisitions and such, but the new investment that the company is planning to pour down the mobile rabbit hole is going to pay substantial dividends in the future.
In a panel discussion on Fox Business, FBN’s Liz MacDonald shed some light on the past, present and future of Facebook Inc (NASDAQ:FB)’s money splashes.
“[…] They have also paid a lot of money for Oculus and the likes, and now low and behold they have realized that wow two thirds of Facebook Inc (NASDAQ:FB)’s revenue comes from smart phones and Sheryl Sandberg [Facebook’s COO] on the conference call last night said, Cookies aren’t playing, we need to get better at technology to track user’s gender and their age, and how old you are, in order to sell them ads […],” said MacDonald.
The couple of billion dollar splashing that I mentioned earlier comprise of Facebook Inc (NASDAQ:FB)’s purchase of Whatsapp for $21.8 billion and Oculus VR for $2 billion. This is of course combined with the $232 million loss in the first half of the year, according to MacDonald.
However, what is important here is that Facebook Inc (NASDAQ:FB) has finally realized, where it really needs to pump a couple of more billions, namely the mobile sector. This news may be discouraging for the short term investors, but for those who believe in Facebook Inc (NASDAQ:FB)’s story it will be a rewarding venture in the long run.
Moreover, the new tools that the company comes up with also have the potential to generate synergies with the old products and acquisitions such as Whatsapp, in that, it could potentially unveil new and better ways to monetize from the messaging platform. There is also Instagram, that is lurking somewhere in the background, which could also attribute more to Facebook Inc (NASDAQ:FB)’s top line provided that the new investment has some candy for the photo sharing platform as well.
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