Facebook reports a 14% jump in active users

In a wider sense Facebook’s shift to mobile seems to be paying off, with 1.39 billion of its 1.55 billion users visiting from a mobile device. Mr Z says that the future for Facebook lies in video, with the social media service set to become a platform for video content online, potentially rivalling the likes of YouTube.

“In the medium to long run, we believe that we’re not competing between Facebook and Instagram”.

Mobile advertising revenue – Mobile advertising revenue represented approximately 78 per cent of advertising revenue for Q3-2015 2015, up from 66 per cent of advertising revenue in Q3-2014.

Interestingly, despite Facebook’s soaring revenues, which are now $12.08bn for the first nine months of 2015, compared with $8.61bn in the same nine months a year ago, overall income for 2015 is down from $2.23bn to $2.12bn.

Buoyed by its mobile-advertising efforts, the social networking site Facebook has posted 11.3 pct profit in its third quarter results – at $4.5 billion in revenue from $4.04 billion last quarter with a significant increase in the number of its active users.

The stocks of the company increased approximately five percent to $109.34 during the extended trading hours.

“We think Facebook looks well positioned to capture an increasing portion of TV ad budgets as markets migrate toward data-driven, highly-targeted online video ad campaigns”, Pitz said, estimating that this “could be worth a few $17 billion a year in the United States alone”. WhatsApp reached 900 million monthly actives and continues to be on a path to reach a billion people and beyond.

“Plus, about 80% of the company’s advertising revenue now comes from mobile, according to Facebook’s latest earning report”. Those views come from the 500 million users who are watching videos every day.

“With Instagram, you could see it adding maybe $2 billion to revenues when you get into 2017”, said Robert S. Peck, an Internet analyst at SunTrust Robinson Humphrey.

Shares in the company rose almost 5pc, pushing the firm’s market capitalisation towards $307bn. “We’re competing with other forms of media”, chief operating officer Sheryl Sandberg said.