After being stressed by weak mobile advertising revenues over the last four quarters, the social media giant Facebook Inc (NASDAQ:FB) finally heaved a sigh of relief this earnings season. The company reported stellar second quarter numbers on mobile advertising growth. Earnings per share of 13 cents, not only surpassed our estimate by 4 cents, but also swung back from a year-ago loss of 8 cents.
Revenues climbed 53% year over year to $1.81 billion and strongly surpassed our estimate of $1.61 billion. Notably, mobile advertising revenues accounted for 41% of the total revenue, up from 30% in the first quarter.
Impressed by the mobile advertising business performance, nineteen analysts revised their target prices upward on the stock. This move swept away the negative sentiments on the social networking company and left many feeling bullish on the firm’s future.
In fact, FB shares soared last week on an elevated volume of ten times more than the normal trading day. This represented the biggest one-day gain in the company’s trading history, and although still 9.6% below the IPO price, there is finally some hope for FB stock in the future.
Moreover, there are several growth opportunities for the company in the years ahead, such as new video ad formats