The social network is partying like it's April.
shares are up an eye-popping 23% in early trading today after the
company's third-quarter earnings impressed investors. The company
actually lost money for a second straight quarter, but
demonstrated enough growth in its nascent mobile advertising
business to convince investors that it's trending back toward
Here are some of the details that investors seemed to like
from yesterday's Facebook earnings report:
- Revenue increased 32% to $1.26 billion for the quarter -
slightly ahead of Wall Street estimates.
- Mobile ads generated 14% of the company's Q3 revenue - a
huge number for a part of the business that didn't exist until
- The company earned $1.7 million a day from mobile
advertising in the third quarter - more than three times the
$500,000/day average in the second quarter.
- The $153 million in mobile sales was triple what analysts
- The number of mobile users increased 61% to 604
So Facebook's mobile business is expanding, opening up a whole
new avenue of potential growth. That's why Facebook shares jumped
above $24 for the first time since late July, even when profits
were down 2% year-over-year.
The stock is still down 37% from its $38 IPO price. And some
potential near-term headwinds loom - over 1 billion will be free
between now and November 14. That means that employees who bought
shares at the time of
will be free to sell off those shares for the first time since
the stock went public on May 18.
However, with such encouraging growth in Facebook's mobile ads
business, perhaps shareholders will be less inclined to sell