Facebook shares soar on strong earnings
Updated On: Jul 24 2013 03:39:48 PM MDT
Facebook shares soared 19% after it posted strong results and said its mobile ad business continues to gain traction.
Facebook reported second-quarter revenue of $1.81 billion Wednesday, exceeding analysts' expectations of $1.62 billion.
Net income rose to $333 million, compared to a loss of $157 million a year ago.
The stock jumped to more than $30 per share in after-hours trading, a price not reached since January. Facebook's stock has never returned to its May 2012 IPO price of $38 per share.
Its monthly active users increased to 1.15 billion, up of 21% year-over-year.
The number of people using Facebook on a mobile phones or tablets increased by 51% to 819 million.
"We've made good progress growing our community," said CEO Mark Zuckerberg on a conference call with investors. "When it comes to mobile, I'm very pleased with our results."
The company said that mobile continues to make up a larger share of Facebook's overall advertising business.
Mobile ad sales accounted for 41% of Facebook's total ad revenue. Last quarter, that share was just 30%.
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