INSTAGRAM AND WHATS-APP INVESTMENTS TAKE TOLL ON FACEBOOK PROFITS
While Facebook sales are booming profits took a hit and so did shares after the social media giant revealed investments in photo-sharing app Instagram, messaging service Whats-App and virtual reality headset maker Oculus Rift took its toll on costs.
Facebook had previously warned that 2015 would be a year of heavy investment and the good news for Facebook is that analysts have said these investments are likely to translate into significant revenue streams in coming years.
Monthly Facebook users are at 1.49bn up 13 per cent on a year ago while sales were up from $2.91bn to 4$4.1bn. Mobile ads accounted for 76 per cent of Facebook’s advertising revenue compared with 62 per cent in the same quarter last year.