Facebook balance sheet: Successful thanks to Instagram

A year after the Cambridge scandal, and the new data protection regulation in Europe has recovered, the Facebook-share again magnificent. Since the Low in December, it has risen by 50 percent. How can that be?

Lothar Gries, boerse.ARD.de

thanks To this proves Facebook is not about the convincing awareness of the qualities of his boss Mark Zuckerberg, as the recent privacy glitch. Data from Facebook is stored users unprotected on an Amazon Server. Despite all these mishaps, the network continues to increase its sales. This is because, on the operational side of the business, the scandals and Fake News had only a minor impact.

In the first quarter, sales increased by 26 percent in is 15.08 billion dollars, as the company announced in the evening. The number of monthly users of the network increased, according to data from Refinitiv by eight percent to 2.38 billion. Also, the operating profit surged to 1.89 dollars per share, more than analysts had expected.

Nevertheless, the recent privacy throw-scandals cast long shadows on the profit. Because of a possible penalty payment in the USA of up to five billion dollars, the company has formed reserves, which reduce its Surplus significantly.

The continuing economic success of the network does not crash. The is mainly due to the, especially in 18 - to 25-Year-old popular daughter Instagram. Over a billion people use at least once in a month the network - and the trend is now one to continue to rise. In the U.S., 72 percent of Teenagers are signed in to Instagram. Thus, the online service has become a hope factor for the group as a whole.

for More course introduced information to Facebook

In-App-payments

As a lucky case, the decision of Facebook, Instagram, so-called In-App payments proved to be. You are initially offered of 23 brands – including Nike, Zara, Warby Parker, and Uniqlo. More to follow. In this function, the users can save their credit card information or notifications from PayPal in the case of Instagram, in order to make your purchases easier.

The Format to come in the case of commercial customers, and advertising partners increasingly well, it was the last. The entry into the Online Shopping market is actually the next big thing: How it is, pumping Facebook many millions of dollars in the Instagram extension "Checkout“.

Enormous growth potential

Lloyd Walmsley, an Analyst at Deutsche Bank, sees in the shopping offer enormous potential. In a study he wrote: "We are of the opinion, that an optimized E-Commerce experience with Instagram, could generate in the year 2021 an additional turnover of tens of billions of dollars, and we see in the 'Checkout with Instagram' an important step for the development of this opportunity." This year, Instagram could redeem, according to Morgan Stanley 16.2 billion dollars and be profitable. the

bullish analysts

The RBC has to leave Facebook, therefore, before quarterly figures on "Outperform" with a target price of $ 200. The consensus estimates for the Online network appeared reasonable, and its own forecasts are slightly more conservative, wrote Analyst Mark Mahaney in its latest study. The same is true for the view. Most of the experts believe the share for more price increases - and point to the potential of Instagram.

1/26 So shaped Mark Zuckerberg, the Facebook Empire