Can Facebook Generate $3M Per Day Through Their ‘Video Ads’?!

Facebook Mark Zuckerberg

Morgan Stanley (NYSE:MS) says yes! A report released by Morgan Stanley states that the Facebook’s video advertising service would reach $1 billion by 2014 and $6.5 billion by 2020. In comparison, market leader YouTube video ads are expected to generate over $4 billion in 2013 and $20 billion by 2020 i.e. 17% of the country's total television ad spending. If Morgan Stanley were to be right, FB should generate $ 2.5-4.0 million per day to meet the expected revenue. This means an additional surplus growth of 20% p.a. apart from the growth that Facebook has been witnessing of late.

Facebook had decided to dump Bing’s translation service by acquiring Mobile Technologies for an undisclosed value. Mobile Technologies helps translate 25 foreign languages. In addition to voice-based browsing, Mobile Technologies’ speech recognition and machine-translation expertise could help Facebook support cross-language chats. Given Facebook’s Mobile Ad revenue growth, increasing monthly-active users from multi-lingual markets like India, Brazil, etc. and recent acquisitions, we believe that the company is on a solid growth track in the medium-term.

Check our Facebook stock rating.

To see Facebook's latest stock price movement, click here (NASDAQ:FB)

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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Comments on this article and MS stock

WW Evans
Facebook is my favorite stock. This news has made the company a famous 'rock-star' in the US internet industry. The number of unique users makes FB truly gigantic that it could capitalize in the long-run.
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Do share this awesome post