Facebook Inc (FB) Shares Hit All-Time High; Earnings Beat Street Estimates

The stock price of Facebook Inc (NASDAQ:FB) reached an all-time high after the social network giant reported second-quarter earnings that beat the consensus estimates of Wall Street analysts on Wednesday.

The shares of the company closed $71.29 per share, up nearly 2.92%. During the extended hours trading, the stock price of Facebook Inc (NASDAQ:FB) went up further to $$75.22 per share, an increase of 5.51%.

During the second-quarter, Facebook Inc (NASDAQ:FB) said its net income increased 138% to $789 million while its non-GAAP earnings went up 121% to $0.42 per share . The social network giant recorded a net income of $333 million or $0.19 in earnings per share in the year-ago period. Wall Street analysts expected the company to deliver $0.26 in earnings per share on $2.85 billion revenue.

Facebook Inc (NASDAQ:FB) said its revenue increased 61% from $181 billion to $2.91 billion.  According to the social network giant, its revenue from advertising was $2.68 billion, up by 67%. Its mobile advertising revenue accounted around 62% of its advertising revenue during the quarter. Its operating margin increased from 31% to 48%.

During the period, the social network giant daily active users (DAUs) increased 19% to 829 million while its monthly active users rose 14% to 1.32 billion year-over-year. Its mobile DAUs were 654 million, up by 39% while its mobile MAUs climbed 31% to $1.07 billion.

Facebook Chief Operating Officer Sheryl Sandberg told Reuters,”We’re seeing our existing advertisers spend more and we’re seeing new people come on to the platform.”

“They have really done a very good job in bridging data gap between the mobile and desktop.So they learn about you on the desktop and use that data when you go on your mobile phone. It’s a seamless experience for advertisers,” according to ” Jason Helfstein of Oppenheimer.