In an exciting development on the Stock Market, Facebook Inc (NASDAQ FB) stock soared to a record high after the company said its profits more than doubled and revenues surged 61% during the latest quarter. Facebook’s revenues crushed the consensus estimates for the ninth straight quarter.
Shares of Facebook Inc (NASDAQ FB) jumped 5.62% to $75.30 in pre-market trading Thursday. It gives the company roughly $190 billion market value, on par with International Business Machines Corp. (NYSE IBM). Facebook stock might be expensive from a market cap perspective. But almost nobody was expecting this level of profitability
Facebook Inc (NASDAQ FB) reported second-quarter revenues of $2.91 billion, up 61% from last year. Revenues exceeded the Wall Street consensus of $2.8 billion. Facebook Inc (NASDAQ FB) said it net income during the June quarter stood at $791 million, up from $333 million last year. Excluding one-time charges, earnings came in at $0.42 per share, blowing past the consensus estimate of $0.32 a share. Operating margins increased to 48%, up from 31% last year.
Facebook Inc: Facebook Going Strong
Mobile advertising was the biggest growth driver during the quarter. The Menlo Park-based company generated $2.7 billion in advertising revenues. Mobile ads accounted for 62% of total advertising revenue, up from 41% in the corresponding quarter last year. Mobile ad revenues soared 151% from the last year. Though Facebook’s core revenues continue to soar rapidly, Mark Zuckerberg emphasized during the earnings call that investors shouldn’t expect heavy monetization from newer acquisitions and apps like WhatsApp, Instagram and Messenger in the near-term.
Besides advertising, investors pay close attention to the company’s user growth. Facebook Inc (NASDAQ FB) added 40 million new users during the quarter to take the total to 1.32 billion. Of them, 829 million users access the platform daily. Mobile usage also showed improvement. The company now has 1.07 billion monthly active users on mobile.
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Facebook Inc (NASDAQ FB) Business News
Facebook Inc (NASDAQ FB) is projected to capture 18% of the $17.7 billion U.S. mobile advertising market in 2014, up from just 9% in 2012. The social networking giant now has 1.5 million advertising customers, and its ad business witnessed solid growth in all geographic regions. This is great news for Facebook investors.
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