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Shares in Facebook (FB) Jump on News of Instagram Ads

By  +Follow October 4, 2013 5:31AM
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Shares in social media giant Facebook (FB) spiked Friday on news that it would start selling ads on the photo-sharing service Instagram. News that Facebook would begin monetizing their $1 billion acquisition from last year pushed shares up almost 3.5 percent.

Instagram to Ease Users In

Instagram assured users in a blog posting that it would make efforts to prevent the new ads from interrupting their users’ current experience.

“Our aim is to make any advertisements you see feel as natural to Instagram as the photos and videos many of you already enjoy from your favorite brands,” Instagram said on the blog. “After all, our team doesn’t just build Instagram, we use it each and every day. We want these ads to be enjoyable and creative in much the same way you see engaging, high-quality ads when you flip through your favorite magazine.”

”Seeing photos and videos from brands you don’t follow will be new, so we’ll start slow. We’ll focus on delivering a small number of beautiful, high-quality photos and videos from a handful of brands that are already great members of the Instagram community,” the blog post continued.

The $1 billion deal to purchase Instagram in April of last year appeared peculiar to many at the time, coming as Facebook was ramping up for its IPO and appearing to buy a steep premium on the small company’s value. However, the long-term strategy may appear clearer after today’s announcement.

Mobile Presence a Focus With Pending Twitter (TWTR) IPO

Many analysts believe the push to increase ad revenues through Instagram is a positive move for Facebook.

“There just continues to be momentum, continues to be good news,” said Benjamin Schachter, an analyst at Macquarie Securities USA Inc. “Even though the Instagram news was somewhat expected over time -- we’ve been waiting for the announcement this year, and yeah, it’s going to be a positive.”

The move comes one day after Twitter ($TWTR) opened its confidential IPO. News outlets have compared the two companies, with a particular focus on mobile ad revenues, noting that 65 percent of Twitter’s ad revenue was coming from mobile as compared to just 41 percent of Facebook’s. As more and more users shift to mobile, Facebook’s ability to monetize ads in that area is believed to be crucial, and Instagram could ultimately prove to be an essential piece of that puzzle.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for FB
charlie
23 Sep 14 06:46:05
Shorted more $FB 76.80
Omid
23 Sep 14 06:42:57
Long $scss $gild $bac $fmcc $fb $cmg $tsla
4-traders.com
23 Sep 14 06:40:04
Facebook prepares 'Google-beating' advertising platform http://t.co/AxHwP4Pna2 $FB $MSFT $GOOG
charlie
23 Sep 14 06:37:28
Shorted $FB 76.20
Guru Algo Trading
23 Sep 14 06:33:35
RT $TSLA Algos triggered SELL @ 09:33 in SIGMA-X, CROSSFINDER, LTSP/T 240.00 $LNKD $PCLN $BIDU $GOOG $FB $TWTR $AMZN $BBRY $AAPL $NFLX $QQQ
James Stollenwerck
23 Sep 14 06:33:15
Trade: 0 $FB S: 0 0. http://t.co/7WTJdILDhJ
Play
23 Sep 14 06:32:00
$FB http://t.co/i45wp9Ey5B I don't understand why people don't take the time to learn to read charts... $FB is going down...
Nonko Trading
23 Sep 14 06:30:15
$FB to announce new advertisement platform
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23 Sep 14 06:29:59
"@wisdom_trade: High Fly stocks will hard hit 30 to 40% $TSLA $NFLX $BITA $BABA $JAZZ $UTHR $PBYI $ICPT $LNKD $FB $YELP"
TV_Trading Ideas
23 Sep 14 06:27:59
$FB... Looking for at least 69.70, then 67.55 $FB http://t.co/PjJPzOHyod
Play
23 Sep 14 06:27:59
$FB chart: $FB... Looking for at least 69.70, then 67.55. http://t.co/pPlhavGSvV
Financial Iceberg
23 Sep 14 06:21:57
Fibonacci Technical Levels $AMZN, $AAPL, $FB, $GOOG ​#amzn #aapl #fb #goog http://t.co/QxvbGDLcf0
ThomasBCN
23 Sep 14 06:21:07
Fight #FiscalScam, buy local: "9 NO's to tax avoiders such as $AMZN $AAPL $GOOG $FB $MSFT $LKDN" https://t.co/FGXdrHx14W by @MarcSerraOller
bill tillery
23 Sep 14 06:19:58
RT @mbmccarty: How to use "Hey Siri" without connecting your iPhone to a power source: http://t.co/pP5tlfVZqH $fb
Sandra Woo
23 Sep 14 06:18:02
RT @YahooFinance: Early Movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/tkiQjLt6Fa
Becky Hiu
23 Sep 14 06:17:47
Commented on StockTwits: Haha but indices rebalancing do, i.e. $TWTR $FB last Friday http://t.co/YxN9fW5dFL
Filip Maciolowski
23 Sep 14 06:17:15
Here Are Your Early Market Movers, Why They Are Moving, And More http://t.co/KaXoqt8eKt via @DITRLI $AAPL $AZN $DB $FB $MSFT $SHPG #Stocks
StockChats
23 Sep 14 06:16:59
Early movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB http://t.co/KFlJxVd1Pj
Stock Market Picks
23 Sep 14 06:14:43
Facebook revamps ads in new challenge to Google http://t.co/1fmcJ7S9yP $FB $GOOG $QQQ
Ryan Mallory
23 Sep 14 06:13:56
$FB Long Setup http://t.co/wjUJZGXk0n
Carolyn B Miciano
23 Sep 14 06:11:14
Trade using support and resistance http://t.co/fySig5FaDS $AMZN $FB $TWTR
Colin Macleod
23 Sep 14 06:07:19
T3 Live Under the Hood (Morning Call Express) http://t.co/WoHRQ4TAuM $SPX $IWM $TSLA $NFLX $AAPL $GOOGL $LNKD $YELP $BABA $TWTR $FB
Wayne Simacek
23 Sep 14 06:05:50
RT @SeekingAlpha: Will Yahoo Or Facebook Acquire Yelp? http://t.co/UJIIIBC651 $BABA $FB $YHOO $YELP
Almost a Trader
23 Sep 14 06:02:41
Watching: $YHOO ($BABA) $HLF $KMX $TKMR $DKS - $SOCL stocks - $P $FB $TWTR $GPRO #stocksinplay #scanning - Keep it tight!
Shysterjd
23 Sep 14 06:01:43
RT @YahooFinance: Early Movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/tkiQjLt6Fa
Play
23 Sep 14 05:59:09
Commented on StockTwits: $FB just kidding http://t.co/k8xR5soC4u http://t.co/GLIQk2f7u2
Colin Macleod
23 Sep 14 05:57:32
NASDAQ Volume Leaders 2014 09 23 http://t.co/SjeqaV4H9O $YHOO $AAPL $SIRI $MSFT $FB $INTC $MU $CSCO
Sandra Matthews
23 Sep 14 05:56:51
RT @YahooFinance: Early Movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/tkiQjLt6Fa
Sinanian
23 Sep 14 05:56:30
RT @2morrowknight: Twitter users share less content than they do when they’re on Facebook http://t.co/oGj7HqWhT3 #SMWMumbai $FB $TWTR http:…
Play
23 Sep 14 05:54:32
$FB 2.99 a month starting in NOV??? NEXT... May go w/ GOOGLE's social network lol http://t.co/j0D2cvMb9i
Play
23 Sep 14 05:53:48
$FB http://t.co/7UXPtRBZnY I will pass VERY QUICKLY... FB is not that deep. lol
tom brakke
23 Sep 14 05:52:06
a bloody battle between old tech and new tech? http://t.co/1FcuET5P6K from Arden Asset $MSFT $INTC $GOOG $FB
Jayson Smith
23 Sep 14 05:50:27
RT @mbmccarty: How to use "Hey Siri" without connecting your iPhone to a power source: http://t.co/pP5tlfVZqH $fb
Guru Algo Trading
23 Sep 14 05:48:16
RT $TSLA Algos triggered SELL @ 08:24 in SIGMA-X, CROSSFINDER, LTSP/T 240.00 $LNKD $PCLN $BIDU $GOOG $FB $TWTR $AMZN $BBRY $AAPL $NFLX $QQQ
Thudder & Wicks
23 Sep 14 05:48:03
Early movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/HlCsscZ27K
Ken Stutt
23 Sep 14 05:46:51
#Nasdaq $FB #SP500 going to be a rough day, enjoy your #starbucks B4 work. You should have ordered a Dbl.
12Stocks.com Tech
23 Sep 14 05:46:43
[video] How Will LinkedIn Compete With Facebook and Twitter?.. http://t.co/JrslGjD9fK $FB #tech #stocks
Stock Moo
23 Sep 14 05:44:29
$fb: [video] How Will LinkedIn Compete With Facebook and Twitter? http://t.co/Xqish9t80m
BUZZ Just-In
23 Sep 14 05:43:37
Don't ignore transactions costs- they add up- US Tech Giants http://t.co/TPs272NYdZ $MSFT $TWTR $AAPL $FB $GOOG #spreadbetting #cfd
Stefan Cheplick
23 Sep 14 05:43:02
Facebook to me: "organic growth is dead." $FB
Consestimate
23 Sep 14 05:40:35
How Facebook Can Predict Your Politics, Your Love Life, And Even Your Sibling's Name. $FB. http://t.co/EZoUAzKvZA
Guru Algo Trading
23 Sep 14 05:34:17
Major European and Asian indices significantly down $TSLA $LNKD $PCLN $BIDU $GOOG $FB $TWTR $AMZN $AAPL $NFLX $QQQ http://t.co/6SPwzYM8H2
Jesus Cryptos
23 Sep 14 05:34:04
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Network and Business
23 Sep 14 05:33:49
RT @YahooFinance: Early Movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/tkiQjLt6Fa
Giorno Givoanna
23 Sep 14 05:33:44
RT @YahooFinance: Early Movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/tkiQjLt6Fa
Consestimate
23 Sep 14 05:32:56
Facebook tinkers with ads to make them more effective. $FB. http://t.co/QOGb6dCapa
Yahoo Finance
23 Sep 14 05:32:48
Early Movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/tkiQjLt6Fa
Alwin Samayoa
23 Sep 14 05:31:25
RT @WrigleyTom: Early movers: $AAPL, $AZN, $SHPG, $FB, $MSFT, $DB & more http://t.co/XSviIIaPjU
Christopher Angus
23 Sep 14 05:30:03
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Chris Judd
23 Sep 14 05:29:59
RT @mbmccarty: How to use "Hey Siri" without connecting your iPhone to a power source: http://t.co/pP5tlfVZqH $fb
				
				
By  +Follow October 4, 2013 5:31AM
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