Facebook Inc (FB) Surges After Earnings Beat

Facebook Inc (NASDAQ:FB) released its latest earnings report after closing bell, posting adjusted earnings of 97 cents per share on $6.44 billion in revenue. Analysts had been looking for earnings of 82 cents per share and $6.02 billion in revenue. Shares of the social network surged in after-hours trades. In last year’s second quarter, Facebook reported $4 billion in revenue.

FB’s mobile ad revenue soars

Facebook Inc (NASDAQ:FB)’s GAAP earnings were 71 cents per share. Ad revenue was $6.2 billion, rising from $3.8 billion last year, while Payments and Other revenue declined to $197 million. Analysts had been projecting $5.8 billion in ad revenue for the quarter. Mobile ad revenue was about 84% of total ad revenue, an increase from about 76% of total ad revenue in the year-ago quarter. That means Facebook Inc (NASDAQ:FB) had about $5.42 billion on mobile ad revenue, which was well ahead of the StreetAccount average of $4.84 billion.

What can past market crashes teach us about the current one?

The markets have largely recovered since the March selloff, but most would agree we're not out of the woods yet. The COVID-19 pandemic isn't close to being over, so it seems that volatility is here to stay, at least until the pandemic becomes less severe. Q2 2020 hedge fund letters, conferences and more At the Read More


The social network had 1.13 billion daily active users, representing a 17% year over year increase. Mobile daily active users grew 22% to 1.03 billion. The number of monthly active users increased 15% to 1.71 billion, while the number of mobile monthly active users grew 20% to 1.57 billion. Wall Street had been looking for 1.69 billion monthly active users.

“Our community and business had another good quarter,” said Facebook Inc (NASDAQ:FB) Founder and Chief Executive Officer Mark Zuckerberg in a statement. “We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services.”

FB’s shares hit a new high

On the earnings call tonight, investors and analysts will be listening for any updates on Instagram monetization and growth for Messenger, which now has more than 1 billion mobile users per month. The social network is expected to look toward monetizing it as well at some point in the future.

Shares of Facebook Inc (NASDAQ:FB) surged by more than 8% initially after tonight’s earnings report, but the stock reversed course and is up 5.89% at $130.60 as of this writing. The stock set a new record high today of $125 per share.