By Dow Jones Business News,
January 30, 2014, 11:47:00 AM EDT
By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Big gains from Facebook Inc. spurred the company's stock price to an all-time high
Thursday, and upbeat reaction to the social-networking giant's latest quarterly results, and its mobile-ad sales in
particular, led advancers across the tech sector.
Facebook ( FB ) rose as much as 16%, to reach a new high of $62.50 a share as investors rallied behind the company
following its fourth-quarter earnings results, which came out late Wednesday. In addition to surpassing Wall Street
analysts' earnings and sales forecasts, Facebook's results were highlighted by a strong mobile-ad business, as the
company said such sales accounted for 53% of its overall advertising business.
"Growing mobile users and engagement coupled with high return on investment for mobile newsfeed ads are driving
increasing advertiser demand," said John Blackledge, of Cowen & Co. Blackledge added that video advertisements and
Instagram "remain revenue levers to come,"and raised his price target on Facebook's stock to $80 a share from $68.
Read a recap of Facebook's earnings conference call.
The market reaction to Facebook's report was enough to give the company's stock its biggest intra-day boost since the
shares rose more than 29% on July 25, 2013. The Nasdaq Composite Index (RIXF) also climbed by 66 points, or 1.6%, to
With Facebook signaling that mobile advertising is a viable source of revenue, other Internet and social-media
companies rallied as well Thursday.
Pandora Media Inc. (P) rose 12%, to $36.94 a share; Twitter Inc. (TWTR) shares climbed more than 8%, to $64.29; Yelp
Inc. (YELP) was up by 5%, at $75.54 a share, and Groupon Inc. ( GRPN ) shares rose more than 4%, to $10.88.
Google Inc. ( GOOG ) rose 2.7%, to $1,136 a share after the company said it sold its Motorola Mobility business to
Lenovo Group for $3 billion. Google had just acquired the mobile-phone maker two years ago for $12.5 billion.
Google is also scheduled to report its fourth-quarter results afte the close of trading Thursday.
Amazon.com Inc. ( AMZN ) is also scheduled to declier its fourth-quarter results after the market closes Thursday. Among
the topics expected to get attention from the online-retailing giant are the performance of its Kindle tablet business
and its Amazon Web Services offerings.
Microsoft Corp. ( MSFT ) was off by 10 cents a share at $36.54 A report from Re/code said the software giant was
narrowing down its search for a new chief executive, and is said to be focusing on Satya Nadella, a long-time Microsoft
employee who runs the company's cloud-computing and enterprise group.
More tech news from MarketWatch:
Google sells Moto: 'Rejoice,' says analyst
Amazon's sales in focus after upbeat holidays
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