Facebook has reported a massive 60% increase in revenue in the third quarter, demonstrating that they have finally figured out how to generate large amounts of revenue from their mobile site. But, as investors celebrated, the companies recent success, the news that Facebook was losing its younger users, halted the celebration.

In one year, Facebook’s revenue surged to $1.8bn, a massive 66% increase. Most notably, nearly half of that revenue comes from mobile users and advertisements. Even though many digital companies have suffered due to shrinking profits from mobile advertisements, Facebook has been able to increase their profit margin by increasing the number of ads per mobile user. They have also made their ads more relevant to its users as they were criticized for showing irrelevant ads which led to low conversion rates. By having ads directed to each user and posting them directly in the news feed rather than the side margins, conversion rates have increased.

The Globe and Mail article: http://www.theglobeandmail.com/report-on-business/facebook-third-quarter-revenue-jumps-60-per-cent/article15164098/

Unfortunately for Facebook, its popularity among younger users in Canada and the U.S has decreased. This is a big blow to the company as each user in these countries earn roughly $4.20 compared to $0.74 in high growth countries such as China.

BBC article: http://www.bbc.co.uk/news/business-24751441

Facebook’s stock: https://www.google.ca/finance?q=fb&ei=2a1yUujIFIGqiAKo7wE

The Japanese aviation market just got a little bit more competitive this week. Traditionally, Boeing (BA) has dominated the Japanese skies; finally after decades of “sworn allegiance” to the U.S. aircraft manufacturing giant, Japan Airlines (JAL) have ordered 31 long-haul jets from the French company Airbus.

-Airbus Chief Executive, Fabrice Bergier, announcing the agreement.

Airbus Lands a Punch on Boeing With First Japan Deal- http://www.businessweek.com/articles/2013-10-07/airbus-lands-a-punch-on-boeing-with-first-japan-deal

After Boeing’s newest offering, the 787 Dreamliner, was sufficiently delayed due to safety and technical issues, JAL has decided to spend their money elsewhere. With the A350 being Boeing’s direct competitor, JAL opted for Airbus’ product. This is a huge agreement made between the two companies, financially, and is an expansion for Airbus who has entered a market controlled by Boeing. In terms of financials, the cost of the 31 planes is roughly $9.5 billion.

Airbus and Japan Airlines agree landmark $9.5bn deal – http://www.bbc.co.uk/news/business-24424873

Having switched allegiances, whatever bonuses JAL had in place with Boeing are certainly forgone. But for what they lost in terms of loyalty bonuses, they gained in negotiating and buying power.

How Japan Airlines Flexed Its Negotiating Muscles-http://www.businessweek.com/articles/2013-10-07/how-japan-air-lines-flexed-its-negotiating-muscles#r=hpt-lst

Twitter has announced the release of its IPO in a tweet. The announcement made by the social media giant to go public has caused quite a stir in the investment world. After following in Facebook in the move to go public, many analysts are concerned it may follow its financial path’. Key concerns with the “micro blogging” platform have been raised since the release of company’s financials.

When Facebook entered the public market at over $38 per share, analysts grossly overestimated the company during the announcement if it’s IPO. With share prices dropping within days to $18, and taking over a year to surpass its original share price, investors and analysts are concerned Twitter’s shares may do the same.

Since the birth of the company in 2006, Twitter has lost roughly $419 million, but has consistently generated increasing revenue totaling $317 million in 2012. Also, as Twitter plans to raise over $1billion at a share price of roughly $30, putting the company’s value at $15 billion.

http://www.cbc.ca/news/business/twitter-ipo-details-raise-questions-over-financials-bots-1.1912936

Even though the company has never posted any profit, I think that it will become profitable in the near future; it is generating increasing revenue due to their aggressive expansion strategy as well as a constantly growing user base. Twitter’s future is unknown, but for now, I think they will be successful in the long run.

http://www.cbc.ca/news/business/twitter-aims-to-raise-up-to-1b-us-in-ipo-1.1895100

The battle for the living room between the big three console companies may have some new competition in the form of Valve’s new “Steam Box” Valve is the very successful video game retailer, publisher, developer and creator of the digital distribution platform, Steam.  With the introduction of their new console, Valve hopes to revolutionize the console industry with a variety of features that sets this console apart from the competition.

Being the top company in digital distribution, Valve hopes to revolutionize the console industry by introducing their digital distribution platform to the everyday gamer vie their new console. Not only will their console distribute games, but the technology behind the console is what also separates it from the big three: Sony, Microsoft and Nintendo. The “Steam Box” will be made by various producers at various price points in order to appeal to customers with varying budgets.

As Valve moves forward with their ambitious project to claim the mainstream console market, Sony and Microsoft are set to release their next-gen consoles. Having established themselves as the number one distribution company in PC gaming, Valve’s console may fail or be the revolutionary idea the company hopes for.

article: http://www.canadianbusiness.com/companies-and-industries/valve-enters-living-room-with-big-boys-microsoft-and-son/

Valve console: http://store.steampowered.com/livingroom/SteamMachines/