Facebook Inc (NASDAQ:FB) is in a prime position to beat expectations when it reports its earnings numbers next Wednesday. The prediction comes from a new report on the online ad industry which suggests a much faster growth trajectory than that predicted by most analysts.
Facebook’s good engagement and its entry into market like video are added advantages as the company continues to monetize its base. Research shows that Facebook actually impacts Google on mobile. According to a Sterne Agee report on Facebook Inc (NASDAQ FB), the faster than expected growth in the digital ad world is of prime importance to the Menlo Park company.
Mark Zuckerberg and team are continually increasing their share of the market, and any increase in the overall size is good for each and every player. Advertising is the base of Facebook business, and its investors should pay attention to the path of the overall market.
Facebook Inc: Growing Ad Market
According to reports, Facebook Inc (NASDAQ FB) is now the second biggest player in digital advertising, and the company’s future is still looking bright. While Google Inc (NASDAQ GOOG) loses out because of its monopolistic size, Facebook is growing and consolidating.
The report puts Facebook Inc (NASDAQ FB) as the beneficiary of around 8% of the digital advertising market. In mobile the company’s position looks even better. Facebook Inc (NASDAQ FB) holds more than 20% of the mobile ad market, a number that doesn’t touch the Google Inc (NASDAQ GOOG) 50% share, but takes away from the company’s power. On mobile Google actually has to compete with Facebook, and the company’s share of the market is growing incredibly quickly.
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Facebook Inc (NASDAQ FB) Business News
Facebook Inc (NASDAQ FB) is growing at a much faster rate than Google Inc (NASDAQ GOOG) and almost any other competitor. Shares in Facebook are already highly valued, however, so it’s unclear whether the company’s investors are willing to boost its price, even if digital ads grow much faster than anticipated. The analysts put a price target of $80 on the company’s shares, a number that would be a new all time high at Menlo Park.
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