Tuesday, July 30, 2013

Facebook shares explode on solid earnings

Facebook shares explode on solid earnings
Facebook has reported second quarter revenue of $ 1.8 million Wednesday beating expectations of $ 1.6 billion analysts.

Net income was $ 333 million, compared with a loss of 157 million a year earlier.

The stock has risen more than $ 33 per share in early trading, a price not seen since January. Facebook shares never returned to its May 2012 session Introductory Course $ 38 per share.

A major reason for the new wave: the number of people who use Facebook on a mobile phone or tablet has increased 51% to $ 819 million, year after year.

And the company said that mobile continues to provide most of (FB) global advertising business from Facebook.

Sales of mobile advertising accounted for 41% of total advertising revenue from Facebook. In the last quarter, the share was 30%.

"When it comes to phones, I am very happy with the results," CEO Mark Zuckerberg said during a conference call with investors.

At the time of the IPO, analysts said the lack of mobile revenue of the company was a major drawback for the action and the reason for their sharp fall in the price.

Facebook said its monthly active users totaled 1.15 million, up 21% yoy. Executives expect that Facebook will continue to grow both in number of users and revenue.

"I am optimistic about growth in Asia and the world," said COO Sheryl Sandberg in the conference call.

Recent publication of the company "Facebook for Every Phone" allows people in developing countries access to Facebook on their phone, even if they have a smartphone. There are 100 million people who use the new application each month.

"There is nothing magical reach millions of users," said Zuckerberg, noting that it was a great initial target was exceeded in the fall of last year. "True goal is to connect everyone. "


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