11 Feb

Facebook’s slow user growth isn’t a concern

WRITTEN BY Patricia Garner

Slow monthly active user growth rate

As of December 31, 2014, MAUs (monthly active users) for Facebook (FB) had improved 13.4% year-over-year and 2.9% sequentially from 1.35 billion in the third quarter to 1.39 billion in 4Q14. Mobile MAUs had increased 25.8% year-over-year to 1.19 billion. DAUs (daily active users) had risen 17.6% to 890 million on a year-over-year basis. Mobile DAUs had grown 34% year-over-year to 745 million.

Even though MAU growth was slow, Facebook’s user growth across its other businesses was pretty high. Facebook witnessed solid growth with Instagram, Messenger, and WhatsApp, which crossed 300 million, 500 million, and 700 million MAUs, respectively, in December. Despite the slow user growth, Facebook continues to be the leading social network in terms of MAUs.

Focus on user engagement

Facebook’s efforts to target the right ads to the right people are helping advertisers gain a better return on investment than peers like Google and Twitter are. Improved ad targeting leads to better user engagement. The high pricing of Facebook’s ads reflects this.

Facebook’s slow user growth isn’t a concern

According to a report from comScore Mobile Metrix, social networking is a popular activity among smartphone users. The chart above shows that several social sites have exceptionally high engagement.

Market Realist’s article Why Facebook beats Twitter on user engagement metric discusses how Facebook leads the pack among social networking sites. The average Facebook mobile user engaged the site for more than seven hours via browsers or apps. Twitter (TWTR) mobile users had an average engagement of nearly two hours during the month.

By comparison, Pinterest, which has seen an explosion of users in recent months, had visitors engaging with the brand for nearly an hour. Tumblr, whose parent company is Yahoo! Inc. (YHOO), had user engagement of 68 minutes during the month.

To learn more about this subject, read Market Realist’s article Why is Facebook focusing on fewer ads to drive user engagement?

Investing in Facebook

If you want to gain portfolio exposure to Facebook, consider ETFs. Facebook makes up 4.1% of the Technology Select Sector SPDR ETF (XLK) and 3.57% of the PowerShares QQQ Trust, Series 1 ETF (QQQ).

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.

172.31.16.229