The question remains as to how many consumers will actually bother to use this functionality, especially given it will require navigating into the app's Settings area, i think the impact from this new functionality will also be manageable for the business.

Atlantic Equities analyst James Cordwell

Categorized in : Technology

We believe this Off-Facebook Activity information has been pretty valuable to Facebook, enabling it to offer advertisers the ability to reach consumers that have already shown some interest in their products or services.

Atlantic Equities analyst James Cordwell

For a growth company, investment should be applauded, but a lot of the additional expenditure is going into cloud where it is unclear whether there will ever be a return on that investment.

Atlantic Equities analyst James Cordwell

Results and guidance are pretty much exactly in line with expectations, but the stock reaction clearly suggests investors were hoping for a little more.

Atlantic Equities analyst James Cordwell

I think the problem is that in the current market any sign of a weak outlook will be quite harshly punished.

Atlantic Equities analyst James Cordwell

Why would Wedbush Securities analysts invest in something like a Twitter when Facebook is on a similar valuation with a stronger trajectory - that's the kind of questions investors are asking.

Atlantic Equities analyst James Cordwell

Assuming Android has only generated material revenue since 2010, then these figures would constitute about 10 percent of Google's revenue and 15 percent of its gross profit since that time, this makes sense given mobile is probably about 40 percent of Google’s revenue today, having ramped up from close to zero over the last 5-6 years, with this split between iOS and Android.

Atlantic Equities analyst James Cordwell

So, the opportunity for Facebook is to drive that 17 percent up to 50 percent, which would represent a $ 150 billion incremental advertising spend shifting from offline platform to online platforms, and the only place that can come from in meaningful volumes is TV.

Atlantic Equities analyst James Cordwell

If the Chinese consumer is pulling back on spending then it seems to be either at the very high luxury end or maybe on some of the everyday non-essential items, i think the smartphone is increasingly viewed as an essential in Greater China. So, I don't see the economy weighing significantly on Apple growth over the next few quarters.

Atlantic Equities analyst James Cordwell