Tag Archives: request

Facebook Stretches Video Power On Its Next Big Moneymaker

Taking a big step on its path of being a video behemoth that spurs ad revenue, Facebook ( FB ) on Tuesday boosted the power of Instagram. Users of Instagram will now be able to record videos of up to a minute, vs. its previous load of 15 seconds. The update is available just to a small group to start but that will expand to everyone in the coming months, Instagram said in a blog post. Facebook began offering advertisers on Instagram the freedom to post 60-second ads , up from 30 seconds previously, in February. Facebook derives more than 96% of its total revenue from advertising, with video ads drawing a premium price. More video is now viewed on Facebook than any other system except for the YouTube platform owned by Alphabet ( GOOGL ). Coming soon: Longer video on Instagram https://t.co/Xt3hIxnL1M — Instagram (@instagram) March 29, 2016 Facebook does not break out Instagram revenue, but analysts estimate that its sales could top $1 billion this year. Analysts have kept a close watch on Instagram as a key revenue-growth leg for the social media leader. Facebook and Instagram are the company’s two most important mobile ad platforms, company executives say. Facebook has always closely monitored user engagement and satisfaction before expanding ads. Allowing users to now post 60-second videos on Instagram should enable Facebook to closely monitor and analyze how active and engaged viewers are with longer-form video on the Instagram platform. The time that people spent watching video on Instagram has increased more than 40% in the last six months, Instagram said in a blog post announcing the video expansion. Facebook began testing ads on Instagram about three years ago. One month ago Facebook announced it now has more than 200,000 advertisers on Instagram. Facebook competes with Apple ( AAPL ), Alphabet, Microsoft ( MSFT ), Twitter ( TWTR ) and others to attract more advertisers. Instagram is one of multiple growth engines that Facebook can accelerate.They include Facebook Messenger and WhatsApp. While Instagram has more than 400 million users, WhatsApp has about 900 million users and Messenger more than 800 million. Facebook is in position to make its widely popular Messenger platform an all-in-one tool that could include a partnership or a battle with Apple and its Apple Pay system. Image provided by Shutterstock .

RV Industry Rumbles Down The Road To Higher Profits

Almost unnoticed, the recreational vehicle and manufactured home industry group has motored nearly to the top of the heap. The group was ranked No. 4 out of 197 groups based on six months of performance as of Tuesday’s IBD. That’s up from No. 53 just six weeks ago. There are only six companies in the group, but four of them have best-possible Composite Ratings of 99. Demographics, favorable market conditions and an economic recovery are tailwinds pushing the industry along the road to higher profits. In an investor presentation earlier this month, Thor Industries ( THO ), a major player in the RV market and one with a 99 Composite Rating, noted that although consumer sentiment has softened a tad this year, the outlook regarding personal finances is still at its best level in 10 years. Domestic vacations are viewed as safer than international travel, and lower fuel prices are making RV ownership more attractive. At the same time, baby boomers representing 24% of the population are retiring and having more time for hitting the open road. Camping in tents and cabins remains popular, and Thor noted the majority of RV owners started out as tent campers. Pricing remains competitive, the company said, but heavy discounting has been much reduced. The Recreational Vehicle Industry Association’s forecast earlier this month projected wholesale shipments increasing to 381,800 units this calendar year, a 2% improvement from 2015. On March 7, Thor reported fiscal Q2 earnings of 97 cents a share, well above estimates of 62 cents. That marked a 70% increase from a year earlier. The next day, the stock gapped up and closed 6% higher on big volume. The stock is completing the right side of a year-long consolidation. Acquisitions have helped it grow. And it recently added manufacturing capacity. It makes both towable and motorized RVs, which include Class A, B and C motorhomes. It operates from 148 facilities in Indiana, Michigan, Ohio and Oregon. Patrick Industries ( PATK ) is another company in the group with a 99 Composite Rating. It makes components for RVs and manufactured housing, as well as kitchen cabinets and furniture for homes and businesses. So it’s not only riding the uptick in the RV market, but it’s also benefiting from a boom in homebuilding and home remodeling, with Patrick also offering quartz and granite countertops. Earlier this month, the company completed the acquisition of Progressive Group, which is a distributor and manufacturer for major-brand electronics, with seven locations in 16 states, primarily in the Midwest and mountain states. Patrick said the acquisition will allow it to expand its presence in the electronics distribution market. Like Thor, it has carved out an undefined base, and it’s nearly to the top of it. Also like Thor shares, the stock popped after reporting earnings Feb. 18 that were well above estimates. Winnebago Industries ( WGO ) is probably the best-known name in the group. It has a 94 Composite Rating. Earnings growth has been ragged in recent quarters, but the stock perked up after reporting earnings March 24 that were 17% higher than a year earlier.

Facebook Messenger Becoming A Swiss Knife That Could Poke Apple

Facebook ( FB ) is in position to make its widely popular Messenger platform an all-in-one tool that could include a partnership or a battle with Apple ( AAPL ) and its Apple Pay system. An investigation by The Information found software codes inside Facebook Messenger that could enable the messaging service to handle in-store purchases, among other features. Messenger currently allows people to send cash between users. But data from Apple iOS code examined by The Information suggest Facebook could provide users the ability to pay for goods in person. Facebook has gradually increased the features in Messenger, such as live video calling or the ability to request a ride from Uber. During Facebook’s quarterly earnings conference call in January, CEO Mark Zuckerberg said newer services would include the ability to book airline tickets, as well as new payment features. But rather than proving its own payment service, Zuckerberg suggested a partnership. “We don’t view ourselves as a payments business, that’s not the type of company that we are,” Zuckerberg said on the call. “We’ll partner with everyone who does payment. We look at the stuff that Apple is doing with Apple Pay for example as a really neat innovation in the space that takes a lot of friction out of transactions as well.” He noted that small tests began about one year ago with some e-commerce services, so that people who bought goods could follow up with customer service or purchase more goods. “We started off pretty slowly, but that’s going to be some of the basis for how we look to make Messenger a business going forward,” Zuckerberg said. “And we’re happy with the initial results.” Facebook Messenger As Payments Vehicle Unclear By entering the mobile payments fray, Facebook could either partner or compete with Apple, Android Pay by Alphabet ( GOOGL ) and other services. “There is clearly the potential for Messenger to be used as a payment mechanism,” wrote Richard Windsor, an analyst at Edison Investment Research, in a research note. “This is all well and good, but the real secret to payments is not the app but the back-end and fulfillment, and how this will work is unclear.” Facebook rivals in Asia, such as WeChat from Tencent Holdings ( TCEHY ) and Alipay from Alibaba ( BABA ), already provide the ability to pay for goods through the app platform. “Although this is virgin territory for Facebook, its Asian rivals have been on this path for quite some time,” Windsor wrote. He said Facebook will face some challenging obstacles in expanding its Messenger features to new areas, but said it’s on the right track. “We see Facebook expanding into media consumption, shopping, gaming and search which will give it over 80% coverage of the Digital Life pie and market leadership,” Windsor wrote. “However, it is one thing to cover the pie and quite another to monetize it. Assuming that Facebook gets it right, it is on the way to create a thriving ecosystem that according to Edison estimates could allow it to double its revenues over the next five years or so.” Facebook stock was up 2%, near 116, in afternoon trading in the stock market today . Facebook is trading comfortably above its 50-day moving average as it works on a new base with a 117.69 buy point.