Social media giant Facebook is expected to announce its much anticipated fourth-quarter earnings report this Wednesday. With over 1.55 billion active users and its latest achievement for its new video feed feature that manages to hit 8 billion views per day, it is expected that there will be some good news shared by Mark Zuckerberg.
Currently, Facebook's shares are not doing so well but according to analyst, the problem occurred due to the current economic situation and not a Facebook fault. Market Watch reported that its share is currently down by 7 percent over the last three months.
However, with the fast growing of technology today, Facebook is also expected to put lots of focus on different keys area for 2016 to make sure the company keep giving a good return on investment. According to the Business Insider, the three main area will be video advertisement, Instagram, and the virtual reality device, Oculus.
With Facebook's majority profit comes from advertisement, the researcher from eMarketer told the news company that the social media company's ads revenue will increase to 82 percent this year. This is a 4 percent increase compared to last year and the prediction is based on the improvement done on Instagram and Facebook Video.
The analysis is supported by other analysts as well including from BAML who said ""While news feed, app install and carousel ads have strong traction, video ads may be the highest profile new media format for Facebook". Besides that, SunTrust analyst also felt the same according to their statement "We think video ads will become the biggest business for Facebook."
To enhance its users' video experience, Facebook also had also introduced a new feature, the live video streaming earlier this year as reported by Fast Company. The feature which is seen similar to other video services like Periscope by Twitter has been attracting lots of interest as user can share video with their close contact alone.
Facebook will also be releasing its Oculus Rift soon, a much-anticipated product aim mostly at gamers. The Rift, which has been available for pre-order since earlier this year has been overwhelmingly received by lots of users especially with lots of 360 video that has been popping around the internet.
Based on some observers, the social media company which will also be hosting a video conference for the quarter earnings reports is expected to unveil more plans for 2016. Facebook is also expected to report a revenue of $5.37 billion with earnings per share of 68 cents.
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