Facebook Inc (NASDAQ:FB) shares surged in after-hours trading after the company reported stronger than expected revenue. After the earnings release, shares of the company briefly traded at over $60 mark, but soon fell below the level. Previously, the 52 week high for Facebook was $59.31, according to Google Finance. So, it can be said that the shares traded over the $60 level mark for the first time in its history, says a report from TechCrunch.
Impressive all-round performance from Facebook
For the quarter, the social networking giant reported earnings of $0.31 per share on revenue of $2.59 billion. Analysts expected the company to earn $0.27 on revenue of $2.33 billion. Strong earnings pushed the stock price up 5% in moments, and since then the stock has gained over $6 per share. The shares are up more than 12% in after-hours trading.
On the earnings, Facebook Inc (NASDAQ:FB) chief executive Mark Zuckerberg, said, “It was a great end to the year for Facebook.”
The confidence shown by investors has also boosted the valuation for Facebook Inc (NASDAQ:FB), which is closing in on the $150 billion mark, using the non-diluted share count.
Cantor Fitzgerald’s Youssef Squali said, “The results showed a material acceleration in year-over-year growth in ad revenues, reflecting healthy demand for social-based advertising, and a sequential improvement of mobile. … This was an all around impressive performance.”
Strong mobile revenue pushed the shares up
Facebook’s investors witnessed another milestone apart from the shares touching the $60 mark. The social networker reported that it now generates a majority of its advertising dollars from mobile. Mobile advertising revenue now account for 53% of total advertising revenue compared to 49% in the third quarter. This is a remarkable achievement considering the company was not making any money from mobile ads when it went public in May 2012.
Previously, Facebook Inc (NASDAQ:FB) investors were concerned about the lack of mobile penetration by the company, which pulled the prices down, but now a solid mobile user base has pushed the stock up. However, there are still some concerns over the declining user base, especially among teens, which may concern investors. During the earnings call, the company told analysts that it has no new data to report on declining teen user growth.