Tomahawk, WI 11/15/2013 (BasicsMedia) – Facebook Inc (NASDAQ:FB) remains largely unperturbed as far as its financial performance goes by the reported exit of youths from its network. The company did admit at the release of its most recent quarterly data that it noted a decline in the number of active young people on its network. FB stated that it was taking the matter seriously. And that seriousness can be seen in the manner that the company has been pursuing acquisition of promising mobile Apps. FB is known to be courting Snapchat which is apparently adamant to consider sell off at the moment. Earlier, Facebook Inc (NASDAQ:FB) took over Instagram in apparent efforts to expand its user base.

FB’s earning figures are still impressive

That FB is unmoved by the fleeing teens is seen in this data: The world’s largest social media company reported its third quarter recently stating that its revenue was up 60% and profits came in at $425 million. The $119.36 billion capped company announced that during the quarter in review, its active user count was 728 million. Facebook Inc (NASDAQ:FB) also noted a significant growth on the number of active users accessing its services on mobile phone which it said jumped materially to 507 million. A look at these figures should calm investors who might be worried about the company’s future because it looks more secure than ever. What Facebook Inc (NASDAQ:FB) has achieved in its life, and more so after it went public in 2012 cannot be said of its rivals Twitter, MySpace and Friendster which are grappling with fast declining user numbers.

FB’s 1 billion user base is a milestone

Facebook Inc (NASDAQ:FB) is the most popular social networking company and it is also the richest of them all. Its popularity is supported by a billion user base which is quite amazing. The company’s closes rival so far is Twitter whose user base is just about half of what FB is having. FB is also adding more users to its network than Twitter is doing in its own network. The strong user base is the reason businesses are flocking to FB to advertise their wares and this is earning the company billions of dollars in revenue.

FB’s focus on mobile platform is also a well-thought strategy that is expected to attract more billions of dollars in revenue. The company is reported to be investing heavily in expanding its mobile reach out and it’s also cooperating with mobile operators worldwide to deliver Facebook Inc (NASDAQ:FB) cheaply to all communities. In the long terms, this should help the company attract more users to its bases which means a lot more ad revenue from its efforts.

What FB needs now is cost cutting

However much Facebook Inc (NASDAQ:FB) is not a cheap company, its heavy investment in terms of research and development, acquisition and infrastructure expansion are draining it of billions of dollars. These are very necessary expenditure as they are laying solid grounds for its future. However, in order for it to avoid cash flow problems, some sort of austerity is called for at this point. If this is done, Facebook Inc (NASDAQ:FB) will not just be making profits going forward, but this profit would also grow materially.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.