Facebook stock soars due to mobile ads

July 25
10:19 AM 2013

Yesterday's results ended concerns regarding Facebook's inability to adapt with users' usage of mobile devices rather than personal computers. Due to the company's success on monetizing advertisements on cell phones, its stock price climbed.

On Wednesday, the social networking corporation stated that it kick-started its mobile advertising from 2012's zero to 2013's 41% of its total ad profit of US$1.6 billion. Facebook's founder and chief executive Mark Zuckerberg said, "Soon we'll have more revenue on mobile than desktop."

The results posted by Facbook thrilled investors. This resulted to the corporation's stock up approximately 17% to US$30.94 in after-hours exchange in numerous Wall Street brokerages.

The company said that it has 819 million active mobile users each month. This figure was 51% higher than last year's second quarter. Mobile advertisements made 41% of Facebook's total ad earnings. Moreover, the company showed strength in its capability to turn users into dollars. Facebook's entire profits from advertising increased 61% to US$1.6 billion. This accounted for 88% of the corporation's total earnings.

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