FileHippo News

The latest software and tech news

Facebook quarterly profit and sales exceed Wall Street’s expectations, sending stock soaring in afterhours trading.¬†Facebook shares soared 25% on Thursday, the morning after it... Facebook Shares Soar

Facebook quarterly profit and sales exceed Wall Street’s expectations, sending stock soaring in afterhours trading.¬†Facebook shares soared 25% on Thursday, the morning after it posted strong results and said its mobile advertising business continues to gain traction.

Facebook has reported second-quarter revenue of $1.8 billion on Wednesday, exceeding analysts’ expectations of $1.6 billion. ¬†Net income rose to $333 million, compared to a massive loss of $157 million a year ago. ¬†The stock jumped to more than $33 per share in early hours of trading, a price that has not been reached since back in January. Facebook’s stock has never returned to its original May 2012 IPO price of $38 per share.

fb shares soar

One big reason for the new surge is expected to be the number of people using Facebook on a mobile phones or tablets has increased by 51% to 819 million, year to year. ¬†Also the company said that the mobile sector continues to make up a greater share of¬†Facebook’s¬†overall advertising structure. ¬†Mobile advertising sales have accounted for 41%¬†of Facebook’s total advertising revenue, in the last quarter, that share was just 30%. ¬†CEO Mark Zuckerberg said in a conference call with the company’s investors: “When it comes to mobile, I’m very pleased with our results,” ¬†At the time of the IPO, business analysts said the company’s¬†lack of mobile revenue¬†was a large¬†downside to the stock¬†and one of the reasons for its sharp drop in price.

Facebook Shares Soar

Facebook has said its monthly active users have increased to 1.15 billion, that’s a figure up 21% year to year. Company executives are expecting Facebook to continue to grow in both number of users and revenue.¬† “I’m optimistic about growth across Asia and the rest of the world,” said COO Sheryl Sandberg on the conference call.¬† The company’s launch of “Facebook for Every Phone” which allows people in developing countries to access Facebook on their devices, even if they do not have a smartphone.¬† “There’s nothing magical about reaching a billion users,” said Zuckerberg, noting that it was a great¬†initial target, one that was surpassed in the autumn of 2012. “The real goal is to connect everyone in the world.”¬† Currently there are 100 million people using the new app each month.

[Images via blogs.lesechos & todayonline]

SOURCE: http://money.cnn.com/2013/07/24/technology/facebook-earnings/index.html