Boston, MA 11/26/2014 (wallstreetpr) – It has been cited on several occasions that the future of Facebook Inc (NASDAQ:FB) interestingly depends on how it dominates mobile. Analysts have cited various opportunities and challenges for the company in the mobile platform. The most obvious benefit for Facebook in mobile is more users, which translates into better revenue and profits. However, the company also has a huge competition to overcome in the space.
According to Quartz, there is no doubt Facebook Inc (NASDAQ:FB) has shown impressive performance in mobile. Nonetheless, not everything from Facebook, especially in terms of apps for mobile, has been a hit, yet the company seeks to attain quick mobile growth as it did on desktop.
Mobile campaign
So far, market intelligence data suggests that most people on mobile use more data on Facebook apps than in the rival services. Data consumption on Facebook sites only trail that of Google Inc (NASDAQ:GOOGL)’s YouTube. Additionally, mobile traffic on Facebook has been on the rise, which further validates the success of the company’s mobile campaigns.
At this juncture, it is safe to conclude that Facebook Inc (NASDAQ:FB) is winning the mobile war. However, the company needs more than it has already achieved in mobile. Its rival Twitter Inc (NYSE:TWTR), for instance, is not leaving anything to chance in mobile campaign.
Younger users
Facebook Inc (NASDAQ:FB)’s push into mobile has multiple benefits. The company can add more users to its network, but more importantly, tap younger users. Its acquisition of Instagram and WhatsApp has particularly been important in winning over the critical young population on a number of platforms.
Currently, Facebook Inc (NASDAQ:FB) generates about two-third of its advertising revenue on mobile. That figure has been increasing as the company increases its mobile penetration. According to experts, mobile penetration could also open up new revenue opportunities for Facebook. The company currently generates 92% of its revenue from advertising. It was reported that Facebook hired a PayPal expert in the person of David Marcus to help with its messaging business, a potentially lucrative segment.
Technicals
Facebook Inc (NASDAQ:FB) after breaking out on November 17, 2014 has been continuously rallying. The stock is trading way above its 20-Day and 50-Day EMA of $75.12 and $75.29 with RSI of 58.73. There has been price and volume action, which has been observed in the stock as the stock is trading above its average volume.
