Facebook Results Deliver More Bad News For Newspapers

Sure, Facebook increasing its quarterly profit to over $2 billion in the three months ended 30 June, a mere six months after it hit $1 billion is significant, but there’s something even more important in the numbers presented by the company’s founder-chief executive officer Mark Zuckerberg on Wednesday. And that’s an inflection point that highlights even more troubled days for print media companies.

The momentum of Facebook’s profit engine doesn’t surprise Sanchit Vir Gogia, Chief Analyst and CEO of Greyhound Research. “Facebook has already built a strong community and is increasing the stickiness of the Facebook app by offering native content. It will now look to focus on commerce, that will be very critical for the company in the long term,” he said.

Gogia is specifically referring to Facebook’s “hidden gems” that he and other experts believe are the company’s next generation of growth engines—photo sharing app Instagram that has 500 million monthly users, and messaging apps Facebook Messenger and WhatsApp, both with over a billion users.

Facebook offers a formidable combination of scale, strong technology, and a diversity of platform. “It has stolen the thunder from companies such as Google and Twitter,” says Gogia confidently.

Source: Live Mint

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