Technology Sector Investors: The Faces Behind Facebook

facebook-box-1334045_960_720

In the current age of the technology sector, there are owners and founders just as well known as their companies. Their names are synonymous with what they do. Take Facebook for example, a company that had a movie created after them called “The Social Network.” Mark Zuckerberg’s name has become as related to success as Bill Gates, both of them creating and founding world changing technology companies. One amazing thing about Facebook and Zuckerberg is the amount of investment he has in his own company.

Facebook Stock

Facebook is major network that people spend time on every day. The average user spends around 50 minutes on the website. This is a tremendous amount of time in our fast paced low attention span society. With that, advertisers have come into the fold to do as they always do, capitalize on a body of users to sell things with. Facebook has become one of the biggest companies in the industry because of this fact.

At around the latter half of 2016, the Facebook stock price was trending around $130, well over the original IPO it opened up with in 2012. Some analysts wouldn’t be surprised to see Facebook stock become a $1,000 a share by the mid 2020s.  Facebook stock has grown at an average annual rate of 32% since its IPO.

CEO and founder Mark Zuckerberg has made it his mission to stay in control of the company and be the guiding principle behind where the company is headed. This is great for shareholders as a dedicated CEO like this can do amazing things as he already has. Public companies led by their founders can be some of the best investments out there.

Growth Opportunity

Facebook is a bastion of growth and progress. At the start of 2016 in the first quarter, revenue jumped up to 52% compared to the previous year at $5.4 billion. Net income managed to hit $1.5 billion with an EPS of 77.

Facebook is considered a two-sided market. That means the subsidy side is everyone who uses the service but don’t pay for it, the users. Facebook has grown to a record 1.65 billion monthly visitors. The big factor and key statistic here is that 1.5 billion of those users are using Facebook only on mobile devices. That’s a 20 percent increase since 2015. This number amounts to a lot of mobile advertising dollars, a huge market.

Already over 80% of Facebook revenue is derived from mobile advertising, something they had no market share of when they first went public in 2012.  Facebook saw an opportunity in that market and when it went public it capitalized on it.

Achieving Financial Goals

Facebook’s mobile advertising is expected to top $18.5 million by the end of 2016, that’s around 18% of the entire $102.5 billion mobile advertising market. Facebook is in a position where they control a substantial amount of the market and can push forward where they want to be. They haven’t even begun to target their other markets they own that exist in Messenger, Instagram and WhatsApp.

Facebook also has the relatively new acquisition of Oculus VR, a market that really hasn’t even opened up yet. The virtual and augmented reality place is going to revolutionize and create advertising and marketing everywhere. Facebook has poised itself through its $2 billion acquisition to be a leader in this market.

Founder Influence

Mark Zuckerberg is a unique personality that has made a unique company. He does not want to be impeded on in terms of his progress. The areas he doesn’t want to deal with or knows his limitations in, is given to other executives to control such as sales, marketing and other issues. While he has taken his company public, investors are more privy to the inner financial workings on the company.

Zuckerberg uses his four million Facebook class A shares and 468 million class B shares to control a 60% voting control in his company. The decision for him to stay in control is simple. He is the creator and main driving force behind the company. It was due to him all along the way that made the company possible and made the right deals to get to its current financial standing.

While investors may know what’s good for some companies, they wouldn’t have made the correct and often difficult choices that Zuckerberg had to make. By not selling the company to Yahoo for $1 billion, waiting to monetize mobile users and acquiring Instagram for $1 billion, he’s set himself as the industry leader.

 

Danielle Richardson has a career in market research but her passion actually lies with investments, particularly the stock market. On her free weekends, particularly Winter afternoons, Danielle sits down to write an article or two. These appear around the web on well-read and liked blogs.

Share small business news, blogs and social media tips with Project Eve’s community of small business owners and entrepreneurs today. Our contributors come from a wide range of backgrounds; so whether you are a small business owner, social media strategist, financial adviser, serial entrepreneur, or write an amateur blog we urge you to contribute a blog to our 500,000+ community today. For more information, please refer to our Content Submissions Guidelines.

41 COMMENTS

  1. I’d must examine with you here. Which is not something I often do! I enjoy studying a post that can make folks think. Also, thanks for permitting me to comment!

  2. Can any one tell me that is there any on the internet course for Search engine marketing, because I would like to learn more concerning Search engine optimisation.

  3. Hiya, I am really glad I have found this information. Today bloggers publish only about gossip and net stuff and this is really irritating. A good website with interesting content, that’s what I need. Thanks for making this site, and I will be visiting again. Do you do newsletters? I Cant find it.

  4. You can certainly see your skills in the paintings you write. The arena hopes for even more passionate writers such as you who aren’t afraid to say how they believe. Always go after your heart.

  5. Interesting blog post. Things i would like to bring about is that computer system memory ought to be purchased if the computer still can’t cope with anything you do along with it. One can deploy two RAM memory boards with 1GB each, for instance, but not certainly one of 1GB and one with 2GB. One should look for the maker’s documentation for own PC to make sure what type of storage is necessary.

  6. Interesting article. It is extremely unfortunate that over the last years, the travel industry has already been able to to tackle terrorism, SARS, tsunamis, flu virus, swine flu, plus the first ever true global economic depression. Through it the industry has really proven to be solid, resilient in addition to dynamic, locating new solutions to deal with adversity. There are generally fresh challenges and chance to which the business must just as before adapt and answer.

  7. Can I simply say what a aid to search out somebody who truly is aware of what theyre talking about on the internet. You undoubtedly know easy methods to carry a difficulty to light and make it important. More individuals need to read this and understand this side of the story. I cant consider youre no more common since you undoubtedly have the gift.

  8. You really make it seem so easy with your presentation but I find this matter to be really something which I think I would never understand. It seems too complex and extremely broad for me. I’m looking forward for your next post, I’ll try to get the hang of it!

  9. Hi! I’ve been following your website for some time now and finally got the courage to go ahead and give you a shout out from Houston Texas! Just wanted to tell you keep up the excellent work!

  10. Obviously I like your web site, but you need to test the spelling on several of your posts. Several of them are rife with spelling problems and I find it very silly to inform you. Nevertheless I will surely come back again!

  11. I do agree with all the ideas you’ve presented in your post. They are really convincing and will definitely work. Still, the posts are very short for novices. Could you please extend them a bit from next time? Thanks for the post.

  12. Hi there! I’m at work surfing around your blog from my new iphone 3gs! Just wanted to say I love reading through your blog and look forward to all your posts! Carry on the superb work!

  13. Thanks for your useful post. Through the years, I have come to understand that the symptoms of mesothelioma are caused by this build up connected fluid between your lining of the lung and the torso cavity. The illness may start in the chest vicinity and spread to other body parts. Other symptoms of pleural mesothelioma cancer include weight reduction, severe breathing in trouble, vomiting, difficulty eating, and infection of the face and neck areas. It needs to be noted that some people having the disease usually do not experience almost any serious symptoms at all.

  14. Simply desire to say your article is as amazing. The clarity on your put up is just great and i can think you’re an expert on this subject. Fine with your permission let me to take hold of your RSS feed to stay up to date with coming near near post. Thank you 1,000,000 and please keep up the enjoyable work.

  15. Great write-up. I am a regular visitor of your website and appreciate you taking the time to maintain the excellent site. I’ll be a regular visitor for a long time.

  16. Next time I read a blog, I hope that it doesn’t fail me just as much as this one. I mean, Yes, it was my choice to read through, nonetheless I really thought you would have something interesting to say. All I hear is a bunch of complaining about something that you could possibly fix if you weren’t too busy searching for attention.

  17. You can certainly see your enthusiasm in the work you write. The world hopes for more passionate writers like you who are not afraid to say how they believe. Always follow your heart.

LEAVE A REPLY

Please enter your comment!
Please enter your name here