Facebook Inc (NASDAQ:FB) has established itself as the leading social media company in the last few years, fending off competition from other players like Twitter Inc (NYSE:TWTR). But Facebook Inc (NASDAQ:FB) is trying to expand further through acquisitions like Oculus Rift and Whastapp in 2014. How can these acquisition shape Facebook Inc (NASDAQ:FB) in future? White Star Capital Managing Partner, Christian Hernandez Gallardo talked on CNBC about Facebook Inc (NASDAQ:FB)’s acquisition and its transition.
Facebook Inc (NASDAQ:FB) has very recently reported out a better than expected earnings numbers, which was majorly influenced by mobile advertisement revenues. Facebook Inc (NASDAQ:FB) has also invested $2 billion for Oculus Rift acquisition and $16 billion for Whatsapp acquisition in 2014.
Gallardo feels that couple of years back Facebook Inc (NASDAQ:FB)’s app was a web-only app and it has transition now into a mobile platform. He pointed out that 70% of users are using Facebook Inc (NASDAQ:FB) app on mobiles. He added that there are 745 million daily active users on mobile platform for Facebook Inc (NASDAQ:FB). He feels that with all the acquisition Facebook Inc (NASDAQ:FB) has become federation of platforms.
“[…] Facebook is not really that blue box any more. Facebook is now Whatsapp with several hundred million users, Instagram with 300 million users. Its Oculus, which is a new platform, doesn’t really exist yet. So being created. Its Parse, a small acquisition that host 500,000 applications on top of it. So we think about Facebook, I call it the Federation of Platforms,” Gallardo said.
Most of the Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOGL) results suggest that moving forward the monetization battle will concentrate heavily on videos. Gallardo thinks that videos are huge for Facebook Inc (NASDAQ:FB) and videos generate them a lot of money. He mentioned that Facebook Inc (NASDAQ:FB) need to monetize the messenger services going forward.
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