Facebook’s mobile ad revenues continue to soar
Mobile ad revenues now account for most of Facebook’s (FB) revenue and reached $8 billion for fiscal 2Q17, a 53% surge on a YoY basis and more than what Wall Street anticipated. However, despite robust growth in mobile ad sales, the company’s overall revenue growth has been slowing down, and is now the slowest since 2015, as we explained in part one of this series.
Mobile ads now provide 87% of the company’s total ad revenue compared to 85% in fiscal 1Q17 and 84% in fiscal 2Q16. Facebook’s total ad revenue in 2Q17 stood at $9.2 billion. Facebook has increasingly been the preferred venue for online advertisers.
Facebook’s ad revenues growing much faster than Google’s
Facebook’s fiscal 2Q17 total ad revenues soared by 47% to $9.2 billion. Meanwhile, Alphabet (GOOG) (GOOGL) clocked ad revenues of $22.7 billion in fiscal 2Q17, which is a 15.6% increase. Facebook’s ad revenues continue to grow at a much faster rate than Google’s, albeit with a much smaller base.
Meanwhile, according to Mark Zuckerberg, video could become the largest driver of the company’s business over the next few years. The company said it’s likely to add short original content programming soon. This area is where Facebook hopes to get returning users like Google’s YouTube. However, competition is already stiff with the likes of Netflix (NFLX), Amazon (AMZN), and Hulu fighting it out.
Amazon (AMZN) announced its fiscal 2Q17 results on Thursday, July 27.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.