Facebook's Big Surprise
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 29 January 2016
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:07.0 | From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money |
| 0:20.3 | radio show. I'm Chris Hill and joining me in studio this week for Million Dollar Portfolio |
| 0:23.7 | Jason Moser and Matt Argusinger and for Motley Fool Deep Value Ron Gross. Good to see you |
| 0:28.2 | as always gentlemen. More than 130 companies in the S&P 500 reporting earnings this week and |
| 0:34.4 | we are going to talk about every single one of us. We will dip into the full mailbag and as always |
| 0:40.7 | we're giving inside look at the stocks on our radar but we begin this week with the social network. |
| 0:45.6 | For the first time ever, Facebook's quarterly profit topped the $1 billion mark and fourth quarter |
| 0:51.3 | revenue increased 51% Matti. I don't even know where to begin with this company. It is the social |
| 0:56.7 | network. You said it exactly right. You have to marvel at Facebook's numbers. If we just start |
| 1:02.2 | with a user base, monthly active users climb 14% to 1.6 billion as my MDP colleague Simon Erickson |
| 1:10.1 | wrote that happens to be the combined population of North America, South America and Europe. |
| 1:14.4 | In case you're wondering, mobile monthly active users jumped 21% to 1.4 billion, also a lot of people. |
| 1:21.1 | So this is phenomenal. The growth revenue and of course revenue, most of which is advertising still |
| 1:25.9 | surge 52% to 5.8 billion that crushed expectations. But here is the really fascinating statistic I |
| 1:32.9 | thought from the release which is if you're speaking of mobile, 80% of Facebook's ad revenue |
| 1:38.4 | in the recent quarter was mobile. If you go back just three years to 2012, it was 23%. |
| 1:43.9 | That's a massive shift in the business and I think at the time we were all, a lot of us and |
| 1:48.4 | analysts, a lot of people smarter than me about social networks said, wow, you're never going to be |
| 1:52.8 | able to monetize mobile as well as you can on a desktop or PC, but they've certainly done it. If you |
| 1:57.6 | look at the average ad revenue per user, it's $3.73 in the most recent quarter that's up from $2.81. |
| 2:04.4 | I mean, we thought I thought was one of the guys who really thought social networks would be very |
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