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Aside from its so­cial me­dia plat­form, Face­book also owns What­sApp and In­sta­gram. It re­ported a 57% rise in rev­enue to $27bn and a 177% rise in net in­come to $12.4bn in 2016. Daily ac­tive users in­creased 18% to 1.23bn peo­ple. (Its first-quar­ter results were due af­ter fin­week went to press.)

“Face­book’s en­tire busi­ness model is at­ten­tion fo­cused. The more at­ten­tion, the more time users spend on the plat­form, the more ads they can see and the more rev­enue Face­book gen­er­ates,” Talpert says.

De­spite its al­ready mas­sive user base, it still has so many more po­ten­tial users.

Founder Mark Zucker­berg has al­ways main­tained that the plat­form has evolved in line with the evo­lu­tion of the in­ter­net: “Now video is the big­gest thing, next could be vir­tual real­ity, or aug­mented real­ity, and each time Face­book be­comes more en­gag­ing.”

Face­book’s pric­ing for ads is on an auc­tion ba­sis, and while ad­ver­tiser de­mand con­tin­ues to go up, sup­ply is not in­creas­ing at the same pace, so ad­ver­tis­ing prices should in­crease.

“Face­book is not go­ing to con­tinue grow­ing rev­enue at 50% a year,” Talpert says. “At some point it be­comes harder to grow, but I don’t think this means it is go­ing to grow slowly any­time soon – Face­book only ac­counts for about 5% of to­tal global ad­ver­tis­ing spend, and dig­i­tal ac­counts for just un­der 40% of the global ad­ver­tis­ing mar­ket.”

Talpert ex­plains that in or­der for any plat­form to have longevity, it can’t just be some­where you go to just have fun. “What it has done well is to em­bed lots of util­ity into the plat­form. Hu­mans have an in­her­ent de­sire to com­mu­ni­cate, with Face­book pro­vid­ing nu­mer­ous tools to tap into this de­sire.

Talpert adds that there are a huge num­ber of peo­ple who rely on some of its other plat­forms like What­sApp, with some even run­ning their busi­nesses on it. This is yet to be mon­e­tised.

Daily ac­tive users in­creased 18% to 1.23bn peo­ple.

Mark Zucker­berg CEO and founder of Face­book

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