From StockNews.com: Social media behemoth Facebook Inc (NASDAQ:FB) has only begun to crack the Asia Pacific markets in terms of penetration and revenue, which means there’s still plenty of growth ahead for the company.
As of now, the U.S. and Canada account for about 50% of the company’s revenue. But that will soon change, as more users from Asia adopt the platform and bring in lucrative ad and referral dollars. From The Motley Fool:
Southeast Asia represents a huge opportunity for Facebook to grow, as more than 30% of online commerce in that region takes place through social media, according to estimates from consulting firm Bain & Co. That compares to just 7% in the United States.
As Facebook develops more ways to facilitate online commerce through all of its apps, it stands to rapidly increase its average revenue per user in a region with a user base that’s already larger than the U.S. and growing much faster.
It’s important to remember that Facebook also owns photo-sharing app Instagram, as well as messaging app WhatsApp. Along with its namesake platform, those two properties will fuel growth in Asia as well.
Facebook Inc shares rose $0.26 (+0.22%) in premarket trading Wednesday. Over the past year, FB has gained 11.96%, versus a 13.06% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of StockNews.com.