Blue Ridge Capital and Facebook
Blue Ridge Capital started a new position in Facebook (FB). The fund bought 3,240,000 shares worth $252 million of Facebook that accounts for 3.07% of its total portfolio, as per the latest 13F filings for 4Q14.
Facebook is a social networking channel. It had 1.39 billion total users and 890 million daily active users worldwide as of December 2014. The company generates substantial revenue from advertising and fees associated with its payments infrastructure, which enables Facebook users to purchase virtual and digital goods from developers.
In 2014, Facebook acquired WhatsApp and Oculus to improve its next generation of communication and computing platforms.
Mobile is the primary driver of Facebook’s growth. 1.19 billion people access the site on mobile devices. The company’s Instagram, Messenger, and WhatsApp crossed 300 million, 500 million, and 700 million monthly active users, respectively.
You can gain exposure to Facebook by investing in the iShares Core S&P 500 ETF (IVV). Facebook accounts for 0.93% of IVV and 3.6% of the PowerShares QQQ Trust Series 1 (QQQ). You can read about the firm’s 4Q14 earnings here.
Facebook to allow free money transfer through Messenger App
Earlier this month, Facebook stated that it would be adding a feature in its messenger application where friends would be able to transfer as well as receive money through it. In order to do so, the users of the social media website would need to link a Visa (V) or MasterCard debit card to their respective accounts. Facebook users would then need to click on a dollar icon in the chat window and send money to their friends. In the next few months, this feature will be available to users across the United States who have access to the Facebook messenger.
A similar service was launched by Snapchat, called Snapcash, in November 2014.
Facebook reaches 2 million mark for online advertisers
In February 2015, Facebook announced that its number of online advertisers have increased from 1.5 million in July 2014 to 2 million currently, a 33% increase in approximately seven months. A large majority of these advertisers consist of small and medium enterprises.
Facebook stated that it had also launched a mobile application in order to manage the campaigns of these businesses that spend between $5 to $50 per day for advertising on the social media platform.
FB is a top pick for 2015, according to JP Morgan
In a recently published equity research report, JP Morgan (JPM) analyst Doug Anmuth stated that Facebook remains a top pick for the year 2015, as the firm is in the “early stages of monetizing its base of 1.4 billion users while also building strong franchises in Instagram, Messenger and WhatsApp.”
As per comScore data, Facebook occupied approximately 22% of mobile Internet time in February 2015 (excluding Instagram and WhatsApp) and on the desktop it occupied 18%. If data for Instagram and WhatsApp are included, time spent on Facebook increased 25% on a year-over-year basis.
Facebook acquires e-commerce search engine, TheFind
In March 2015, Facebook announced that it acquired an e-commerce search engine, TheFind, thereby entering the Internet search as well as e-commerce space. The two companies merged in order to increase the digital advertising business of Facebook.
The next article will discuss Blue Ridge Capital’s position in Air Products & Chemicals.