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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
Future Tech Investor
2 Sep 14 09:07:04
$NVAX breakin out $ITMN $FB $JD $MU $TLM $SSYS $JRJC $TSLA $SPWR $FSLR $CMG $F $SCTY $GTAT $HIMX $DGLY $AAPL $JPM $CPWR $NRG $CSCO $INTC $BA
△
2 Sep 14 09:05:41
$FB angry. #squeeze baby :)
Donald van Deventer
2 Sep 14 09:05:12
RT @KamakuraCo: Facebook Annualized Default Probabilities 0.09% And 0.14% At 5 And 10 Years $FB http://t.co/fTCncvoHFJ via @salphatrending
Mag Wilde
2 Sep 14 09:05:00
$FB $TWTR $TSLA $BIDU consolidate above VWAP as SPX reverses the early move higher
Winborn Traders
2 Sep 14 09:04:49
$ES_F $SPX $SPY $DJI $QQQ $YM_F $NQ_F $TF_F $FB did your Trade get Stopped Out because of The Market's noises? we can help you to avoid it!
△
2 Sep 14 09:04:12
@traderstewie @toknees will bring a nice little cup & handle break out in $FB like $TWTR
Herbert R Tarlic Jr
2 Sep 14 09:03:23
@traderstewie @toknees Are you sure? I mean, normally I am short a stock that moves up like that and I have no position in $FB.
5SOS
2 Sep 14 09:03:07
RT @sellyrockit: #FOLLOWTRICK $rt $follow me,@harryfxcksme @My5sosArmyy @lazykidrauhl @avonsespinosa $all who rts $fb who follow u $gian …
Future Tech Investor
2 Sep 14 09:02:53
$KNDI Possible 60min bottom/reversal candle $TSLA $TTM $F $GM $FSLR $DANG $MOBI $BABA $JPM $GPRO $CPWR $EXEL $FB $DGLY $GTAT $MSFT $TWTR $YY
Tommy P.
2 Sep 14 09:02:48
$FB classic cup & handle pattern on daily
traderstewie
2 Sep 14 09:02:09
"@toknees: @traderstewie $FB has mopped up last week's downgrades like a sponge." <<~ quite impressive how it did that actually
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2 Sep 14 09:01:21
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2 Sep 14 09:01:03
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Patrick
2 Sep 14 09:00:06
#TOPTICKERTWEETS $AAPL $SPY $DGLY $TSLA $FXI $EWJ $TWTR $FB $USD $SPX #quantheta
Stock Wars
2 Sep 14 09:00:00
U.S. Active (Stock Wars): $TSLA +4.63%, $AAPL +0.91%, $BKW +3.43%, $FB +1.08%, $INTC -1.06% http://t.co/iKxPnk4TjS #StockWars
Thomas
2 Sep 14 08:58:55
RT @traderstewie: Two beautiful looking multi week consolidations for $BIDU and $FB : $BIDU broke out today , $FB looks set to go any day …
Cory Huddleston
2 Sep 14 08:58:31
RT @marketmodel: I hope you benefitted from that $FB downgrade gift.
Tony Parker
2 Sep 14 08:58:27
@traderstewie $FB has mopped up last week's downgrades like a sponge.
Trading Hub
2 Sep 14 08:57:55
Crystal clear alerts.. Easiest service to follow along with and get great trade ideas.. We know, we've looked.. http://t.co/bSu9oSuk6M $FB
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Money is the Motive
2 Sep 14 08:57:40
RT @danshep55: $fb through that 76 on watch this week http://t.co/CAy8bdiXjY
Duke Rexx
2 Sep 14 08:57:38
RT @danshep55: $fb through that 76 on watch this week http://t.co/CAy8bdiXjY
lookn4wins
2 Sep 14 08:57:36
$F Parabolic SAR $F Most recent stock chart and technical analysis. $WUBA $T $FB $IBM $EDC $PLUG http://stockc http://t.co/tgbKKGSSyo
Amigobulls
2 Sep 14 08:57:33
$FB $TWTR $MSFT $LNKD New investment boosts snapchat valuation to $10 billion. http://t.co/NpYzqOLDmR
Winborn Traders
2 Sep 14 08:57:05
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Dan
2 Sep 14 08:56:39
$fb through that 76 on watch this week http://t.co/CAy8bdiXjY
△
2 Sep 14 08:56:24
RT @traderstewie: Two beautiful looking multi week consolidations for $BIDU and $FB : $BIDU broke out today , $FB looks set to go any day …
Duke Rexx
2 Sep 14 08:56:19
RT @traderstewie: Two beautiful looking multi week consolidations for $BIDU and $FB : $BIDU broke out today , $FB looks set to go any day …
Futures Day Trader
2 Sep 14 08:56:09
$ES_F $SPX $SPY $DJI $QQQ $YM_F $NQ_F $TF_F $FB did your Trade get Stopped Out because of The Market's noises? we can help you to avoid it!
EMini Futures
2 Sep 14 08:56:08
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2 Sep 14 08:55:56
$ES_F $SPX $SPY $DJI $QQQ $YM_F $NQ_F $TF_F $FB did your Trade get Stopped Out because of The Market's noises? we can help you to avoid it!
traderstewie
2 Sep 14 08:55:45
Two beautiful looking multi week consolidations for $BIDU and $FB : $BIDU broke out today , $FB looks set to go any day now
Nico Starr
2 Sep 14 08:54:33
@RedDogT3 ok. I like $TWTR & $FB but the had a monster runs recently, still long, not sure if I shud sell, I just don't want market selloff
LikeFolio Loves
2 Sep 14 08:52:35
RT @RedDogT3: I still think $fb 2014 high will not be $76.74
12Stocks.com
2 Sep 14 08:52:03
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2 Sep 14 08:51:06
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Trax Jarred
2 Sep 14 08:50:16
RT @mnycx: Break out zone above 76's... "@10ktrader: $FB - Updated weekly chart…. http://t.co/aTaMLB2Tes"
Investors Hangout
2 Sep 14 08:49:44
danrocks: $PEIX Picking Up MOMO $TKMR $FB $GDXJ $SMH http://t.co/I3q0fWvjX2
Investors Hangout
2 Sep 14 08:49:44
danrocks: $PEIX Picking Up MOMO $TKMR $FB $GDXJ $SMH http://t.co/QRQLzkXIz0
brigitta
2 Sep 14 08:49:24
RT @sellyrockit: #FOLLOWTRICK $rt $follow me,@harryfxcksme @My5sosArmyy @lazykidrauhl @avonsespinosa $all who rts $fb who follow u $gian …
Paul Connolly
2 Sep 14 08:47:11
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EMini Futures
2 Sep 14 08:46:11
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Winborn Traders
2 Sep 14 08:46:01
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Fernando Sotres
2 Sep 14 08:44:18
$AAPL , $FB , $TSLA , $UA , $GPRO y $TWTR BOOOOOOOOM! #FTR1
Joe Crist
2 Sep 14 08:41:46
$fb....we had the pump this morning...now time for the dump...same old shit
Edouard Soutzo
2 Sep 14 08:41:17
Oups ! $SPX $FB $TSLA $GPRO $AAPL $GOOG #Bubble Trouble? 2007 Vs 2014 Global #Stock Market #Valuations http://t.co/dbeREeJ09B via @ValueWalk
Tommy P.
2 Sep 14 08:39:29
$FB setting up very nicely for bulls
Joe Crist
2 Sep 14 08:38:10
$fb...the longer this stays on $75.60 the more opportunity it has to drop...did the same thing last week too!
Katy Alexander
2 Sep 14 08:34:55
$fb..75.63..close to 52 week high..should pull back now.
				
				
By  +Follow October 4, 2013 5:31AM
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