Are Facebook Bears Making Netflix Bears' Mistake?
Facebook posted strong quarterly results on Wednesday, but some worrywarts are pointing to a 15% decline in desktop advertising revenue. This remains the social networking giant's biggest business, and on the surface the concern is understandable.
However, overall revenue did soar 38% during the quarter. Mobile advertising -- which didn't even exist a year ago -- has ballooned to make up nearly a third of Facebook's advertising revenue.
In this video, longtime Fool contributor Rick Munarriz points out how this shift in strikingly similar to what has been happening at Netflix as DVD-based subscribers have fallen off over the past two years. Streaming Netflix subscribers have more than offset the slide in mail-based rentals, and now mobile advertising at Facebook is more than offsetting the slide at Facebook.com.
After the world's most hyped IPO turned out to be a dud, many investors don't even want to think about shares of Facebook. But there are things every investor needs to know about this revolutionary company. The Motley Fool's newest premium research report shows that there's a lot more to Facebook than meets the eye. Read up on whether there is anything to "like" about it today to determine if Facebook deserves a place in your portfolio. Access your report by clicking here.
The article Are Facebook Bears Making Netflix Bears' Mistake? originally appeared on Fool.com.Longtime Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends Facebook and Netflix. The Motley Fool owns shares of Facebook and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.