• The Seville Reporters

10 Things to Know: Facebook

Facebook recently reported another good 3rd quarter, surpassing $10 billion in revenue in a quarter for the first time ever. The company is still growing its daily active users and monthly active users. On the company's earning call, Facebook execs gave investors an idea of where they believe their growth will come from and where they plan to take the company.

As Facebook continues to climb in price we continue to look back at major price milestones and wonder, "why didn't we buy this stock?" The company is approaching the $200 per share mark. We wondered does the company have enough going on to get the stock to and past $200 per share?

In our 10 things we look at the now, the headwinds, and the future of Facebook to see if it's worthy of an investment.

Here are 10 things to know about Facebook.

1. In recent 3rd quarter results Facebook reported revenue of $10.1 billion, surpassing Wall Street's expectations by $490 million. This represents a 47% increase over 3rd Quarter 2016 revenue.

Facebook Revenue by Quarter

(Data: Facebook)

2. If you aren't aware 95% of Facebook's revenue comes from advertising. Because of this it is important to the business of facebook to keep its user base growing and coming back to Facebook and staying engaged. 

3. In 3rd quarter 2017 Facebook was able to grow its Daily Active Users and Monthly Active Users by 15% compared to 3rd quarter 2016. These numbers for DAUs and MAUs do not include Instagram, WhatsApp, or Oculus users.

Facebook's Daily Active Users (DAUs)

(Data: Facebook)

Facebook Monthly Active Users (MAUs)

(Data: Facebook)

4. In September WhatsApp suffered a complete blockage in China as the government stepped up security ahead of a Communist Party meeting in October. A WhatsApp ban in China did occur in July but the ban was lifted a few weeks later. Hopefully the recent blockage will be temporary. At the time of the recent ban WhatsApp was the only Facebook service allowed in China.


5. Russia! Facebook has admitted that Russia purchased advertisements on Facebook during the 2016 election in an effort to sway the election. This issue forced senior executives of Facebook, Google, and Twitter to Washington D.C. to answer questions about the interference from Russia. While it is a serious matter, we don't foresee serious consequences for Facebook. However the issue will cost Facebook money.