Markets were heading lower on Monday after Facebook (FB) announced that they would now begin targeting advertisers in Africa. The social media giant reported that they’ve had a surge of 100 million people accessing the site in Africa. Of that number, nearly 80% of them are logging on via mobile devices. The company recently announced that their advertising revenue was up 150% during the second-quarter, which was roughly 62% of their overall revenue. This new data presents the company with a new audience for advertisers. Nicole Mendelsohn, the company’s vice president for Europe, Middle East and Africa, said, “There is a fantastic opportunity for business as well if you are local or a global business. Knowing that there is all these people now in Africa that you can connect with, that is exciting as well.”
Shares of General Electric (GE) were rising slightly after it was announced that Electrolux would be paying $3.3 billion for their appliance business. This marks the largest deal on record for the Swedish company and underscores their plans to double U.S. sales. Electrolux is the world’s second-largest appliance maker according by sales. Chief Executive at Electrolux, Keith McLoughlin, said, “I think it’s a historic event for Electrolux. I’m very excited about it. I think the fit – the strategic fit, the industrial logic – is compelling.”
Shares of Amazon (AMZN) were falling after the company cut prices on their smartphones ahead of the new Apple (AAPL) iPhone release. The smartphone, Fire, will now be set with a price tag of 99 cents when a customers signs up for a two-year contract with AT&T. This is a drastic price cut from the previous $199 price. Amazon also said that they will include unlimited cloud storage and 12-months of Amazon Prime with the contract. Apple is set to reveal their newest iPhone model tomorrow.
That’s all for today,
Warren Gates, Normandy Research