Facebook Inc (FB) Shares Little Changed By Strong Earnings Beat

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Facebook Inc (NASDAQ:FB) released its latest earnings report after closing bell tonight, posting adjusted earnings of $1.09 cents per share on $7.01 billion in revenue.. Analysts had been expecting earnings of 96 cents per share and $6.9 billion in revenue. In last year’s third quarter, the social network reported 57 cents per share in earnings and $4.5 billion in revenue.

Facebook continues solid user growth numbers

Net income was 82 cents per share or $2.38 billion, a significant increase from last year’s 31 cents per share or $896 million. Ad revenue rose to $6.8 billion from $4.3 billion last year. Capital expenditures amounted to $1.1 billion.

Facebook Inc (NASDAQ:FB)’s mobile ad revenue rose to 84% of total ad revenue from 78% last year. The social network had 1.79 billion monthly active users, marking a 22% year over year increase, and 1.66 billion mobile monthly active users. It had 1.18 billion daily active users and 1.09 billion mobile daily users. Analysts had been expecting 1.76 billion total monthly users and 1.16 billion total daily users.

“We had another good quarter,” said Facebook Inc (NASDAQ:FB) Founder and Chief Executive Officer Mark Zuckerberg in a statement. “We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”

How long will Facebook be able to keep impressing?

Shares of Facebook Inc (NASDAQ:FB) bounced around in after-hours trade as investors weighed the size of the earnings beat. The stock declined by less than 1% to as low as $126.71 in after-hours trades.

Investing.com Senior Analyst Clement Thibault weighed in before tonight’s earnings report, saying that the social network may not be able to keep impressing.

“The company may be able to achieve Wall Street’s targets in the near future, but with younger users constantly searching for the next, new ‘hot’ thing—which isn’t Facebook Inc (NASDAQ:FB) anymore—continued significant growth is less obvious than the company’s valuation would suggest.”

He also warned that Snapchat continues to loom as a competitive threat, although the size of that threat remains unclear as of now.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.

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