Facebook Inc (NASDAQ:FB) surprised the Street with an impressive 61% increase in revenues year on year for the second quarter on the back of its mobile advertising revenues. From analysts to investors, everyone now has their eyes set on how Facebook Inc (NASDAQ:FB) goes on to monetize Instagram and autoplay videos. On today’s edition of Squawk Alley on CNBC, Business Insider’s editor-in-chief & CEO, Henry Blodget, discussed the phenomenal quarterly results from the company.
“This is what a lot of the bulls were saying at the IPO, just look down the road how leverageable this business is, it’s extraordinary, but I think there is a bigger message here, goes back to what we were talking about right now, about long term focus. Remember at the IPO, everyone commented: ‘such a disaster!,’ ‘they have priced it terribly!,’ ‘It went down’, ‘It’s all over forever,’ ‘the reputation is ruined.’ Nobody remembers that and you look back, they raised $18 billion on the IPO by pricing it just below the clearing price,” Mr. Blodget said.
Mr. Blodget feels that businesses should look at the way Facebook Inc (NASDAQ:FB) handled its IPO, raising just adequate money that it required in order to grow and focusing on the long term. CNBC’s Jon Fortt compared Facebook Inc (NASDAQ:FB) journey to that of Google Inc (NASDAQ:GOOGL) saying that Facebook Inc (NASDAQ:FB) is at the place right now which Google Inc (NASDAQ:GOOGL) was in 2006-07. According to Mr. Fortt Facebook Inc (NASDAQ:FB) is on its way to dominate the social networking landscape just like Google Inc (NASDAQ:GOOGL) has dominated search.
“Instagram, what a platform for advertising, this is what they have been saying forever, but it’s very visual, so different from Twitter. It could easily get to [the size of] Twitter […] they are doing a spectacular job at innovating one product and that’s Facebook,” Mr. Blodget replied.
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