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.
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