Gadgetory

hey everyone and welcome to the inside scoop I'm seen at Saqqara tsuboi joined by Paul Sloane executive editor hi Paul we are talking about Facebook earnings be upwards numbers came out today yep and they're pretty good yeah it was fourth quarter they showed a lot of growth they showed real strength in mobile twenty-three percent of their ad revenue is now coming from mobile which is huge everything was really strong though investors are ho-hum about it because stocks been up quite a bit in last few months and to get their facebook has been spending a lot more money so to get their ad revenue up 23% for mobile what have they done differently in the last couple months well basically starting last spring they introduced what's called sponsored stories which are their mobile ads ads that come right in your newsfeed and the big surprise as they just said on the conference call was that these worked they're not angry and users people don't mind them and they're very they kept stressing how powerful they are because they have your real identity day of people who want to be there this was not seen as intrusive and if they when they get the balance right and they stressed it really in the early days these ads convert to use the add lingo very well people are clicking through right interesting no facebook also rolled out a couple of other new products in the last few months like gifts and the surge has that had much of an impact on no gifts they wouldn't say anything they said it's tiny tiny they hinted that's you know the revenue but they and they hinted that there's still a lot of tweaking going on with the product okay they got pressed on this a bit and said we're just going to have to figure out the right mix but they're optimistic that it will grow into something but they didn't give any timeframe search of course they just rolled out this quarter Harry now and this is something this is a big you know Mark Zuckerberg favorite project right now he keeps talking about the trillion things and shares and goes across that go across Facebook and sees this as a huge opportunity to create a product that's unlike any kind of web search which is social search which is you know they call it graph search but it's way too early to tell it's only been rolled out to maybe tens of thousands of people right we'll see that in future course of course what would you say the company really needs to do moving forward to continue this upward trajectory of the start price yeah I think it's more the same I mean look there's still at $31 there's still wave far below their $38 IPO offering price yeah the last few months have been very optimist and they're on the right trajectory but they just have to keep going and showing that their mobile ads work you know keep making their products work better and better and and just make that balance work and hopefully some of this revenue will start to improve from other other products that just gives and finally you know with all this talk of mobile I hear that Zuckerberg finally squashed the rumors of a facebook phone that's just not going to happen well he's actually squashed these rumors couple of times but he wasn't even asked directly today but he just came out and said we are not going to make a phone look to him it just doesn't make sense why make the device I mean they want to be on all the platforms they don't want it just doesn't make sense they won't have a deep relationship through Android through iOS and through mobile web he didn't talk about the other other smaller platforms out there but that he just once again dismissed that right right why cross over to hardware when you're doing well enough as it is it's just not logical for them yeah thank you so much Paul Sloane executive editor I'm cars tsuboi thanks for watching the inside scoop