Surprise! WhatsApp Is Flourishing With Facebook, Inc.

New data shows that the messaging service has been gaining momentum since its acquisition by Facebook, Inc.

May 1, 2014 at 11:00AM

WhatsApp has gained 50 million new active users since February, when Facebook, Inc. (NASDAQ:FB) acquired the upstart company in a breathtaking $19 billion cash and stock deal. Fool contributor Tim Beyers explains the implications in the following video.

In a blog post earlier this month, WhatsApp said that it had reached a half-billion active users sharing 700 million photos and 100 million videos each day. That's up from 450 million at the time of the Facebook deal.

Tim says WhatsApp's growth shouldn't come as much of a surprise. Facebook serves more than 1 billion active mobile users each month. Surely, some of them are now using WhatsApp regularly and vice versa. Will that lead to higher Facebook revenues over time? We can't be sure.

For now, all we know is that Facebook's scattershot acquisition strategy and newly federated digital digital empire -- consisting not only of WhatsApp and Oculus VR but also fitness tracker ProtoGeo -- isn't crimping growth. To the contrary. Revenue soared 72% in the first quarter. Per-share profits more than doubled over the same period.

Now it's your turn to weigh in. Do you believe WhatsApp will accelerate revenue and profit growth at Facebook? Please watch the video to get the full story and then leave a comment to let us know your take, including whether you would buy, sell, or short Facebook stock at current prices.

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Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends and owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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