Morning Business Memo
Facebook’s dream of building a booming business from mobile advertising is becoming a reality. Its shares jumped nearly 20 percent in the hours after its quarterly report was released. Last year’s loss was turned into a $333 million profit. Revenue grew 53 percent – well above Wall Street forecasts. “We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile,” Facebook founder Mark Zuckerberg said. “The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”
Campbell’s Soup is going after a younger crowd. AdAge reports Campbell’s will launch more than 200 products “from Goldfish Mac & Cheese to a new variety of V8,” as it deals with what the CEO calls “seismic shifts” in the food marketplace. The company plans to focus more on fresh foods, spending more on its Bolthouse Farms division, “the fresh carrot, salad dressing and beverage marketer it acquired one year ago,” reports AdAge.
Google has come out with a brand new $35 device to stream video and other internet content from tablets, smartphones and other mobile devices to TV sets. Chromecast is a USB stick that’s Google’s latest attempt to move into consumers’ living rooms, extending the firm’s reach to television screens. The new product is Google’s latest challenge to Apple, as well as other firms that make internet-connected devices for TVs.
A federal court in Washington has ruled in favor of Dish, saying the firm’s Hopper ad-skipping service does not violate copyright law. Hopper automatically removes ads before TC viewers see recorded shows. The decision is a blow to broadcast companies. With this ruling DVR firms and cable companies may offer similar services.
Soda sales have lost their fizz. Coke, Pepsi and Dr Pepper Snapple Group all sold less soda in the 2nd quarter. Coca Cola blames its 4 percent sales drop in North America on a cold, wet spring. But according to Beverage Digest, the decline for the industry is part of a recent trend. Per capita soda consumption in the U.S. has been slipping steadily since 1998. Sugary drinks have been linked to obesity, and consumers now have many more choices, including bottled water and fruit drinks.
Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesabc