Technology
Facebook Earnings Reveal Mobile Ads Generate Two-Thirds of Revenues
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Facebook investors are liking what they see here. We have broken out the main metrics that will derive most of the conversation on Thursday. The highlights are continued user growth, mobile ad growth, total revenue and income growth, solid cash balances, and more. Here are some highlights:
Facebook’s strength in mobile advertising, now at 66% of all revenues, is the salient fact here. It’s likely that the user growth numbers will be slightly below estimates, but there is no getting around the fact that Facebook again had a very strong quarter financially. Mobile ads are not priced as high as web ads, but Facebook is making up the difference (and more) in quantity.
The company has also added nearly $5 billion in cash and securities to its balance sheet in the past 12 months.
Facebook’s shares closed up about 0.6% at $80.76 on Tuesday, against a 52-week trading range of $43.55 to $81.16, a new 52-week high set earlier today. The reaction in the after-hours has shares down about the same amount at $80.48. Thomson Reuters had a consensus price target of $87.85 before today’s results.
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