One Company Which Dominated the Technology Sector: Facebook Inc (FB)
The year 2015 belonged to Facebook Inc (NASDAQ:FB). Three years ago, no one would have ever thought that the company would have such strong growth in a short span of time. Its CEO, Mark Zuckerberg, proved skeptics wrong time and again after a lot of issues were raised on the pricing of its IPO in 2012. If the company rose to dominate the technology sector in the year, it was mainly because of the belief in itself and the innovation with which it was able to attract users. Aside from that, it also started monetizing some of the acquired firms like WhatsApp. Also, its stock surged 35% even as the broader S&P500 index was struggling to make any gains.
Acquisition Is Paying
When Facebook Inc (NASDAQ:FB) has acquired WhatsApp and Instagram in the past, there were skeptics about the pricing. However, both were making significant progress after the acquisition. Currently, both are claiming user bases of 900 million and 400 million monthly active users respectively. The number suggested that it was higher than Twitter Inc (NYSE:TWTR)’s monthly active users base of 320 million. There was no doubt that being the leader in social media also helps. However, it was a combination that is working well for the users though apps that are quite different and required a different platform.
It was because of the innovation, the company is most popular with the smartphone owners in the United States. A recent data from Nielsen said that the social media was the most used app in the smartphone in the current year. The research organization said that on average, the company’s app had 126.7 million unique users every month in the current year. That translated into an 8% growth on YOY basis. Nielsen also said that Instagram was ranked eighth with 55.4 million monthly active users’ thus recording 23% YOY growth.
Facebook Inc (NASDAQ:FB) should also be pleased with the progress that its Messenger has made. As a result, it was ranked as the third popular app behind Alphabet Inc (NASDAQ:GOOGL)’s YouTube. Also, it was the highest growth provider in the top ten apps listed by the research firm. Every month, more than 96 million unique users averaged on logging the app in the current year. That represented 31% YOY growth though it was significantly lower than the 242% uptick it was able to make in the previous year. However, the company’s move to separate its instant messaging had a role in that years numbers.
As the Messenger occupied the top slot of Nielsen, the next in line for Facebook Inc (NASDAQ:FB) would be Moments, which was unveiled in June as a photo-sharing app. The company has also been making significant progress in its video segment. The social media is also focused on artificial intelligence and virtual reality. It is better placed to provide solid growth in the years to come too.
Latest posts by Viraj Shah (see all)
- Tesla Motors Inc (NASDAQ:TSLA)’s Elon Musk Is Going After Semi Truck Industry - November 17, 2017 04:37 AM PST
- Tesla Motors Inc (NASDAQ:TSLA) Is Not “Hotbed for Racist Behavior” - November 15, 2017 06:58 AM PST
- Nikola Tesla and Tesla Motors Inc (TSLA) – The Past & Future of the World You Cannot Ignore- Part 1 - May 15, 2017 05:11 AM PST