Facebook Stock Dips A Bit After Big Post-Earnings Release BoostBy: Chris Crum - October 25, 2012
Facebook saw its biggest jump since May (when the company launched its IPO) on Wednesday, following the release of its earnings report, and the company’s comments about monetization on Tuesday.
Facebook emphasized how big mobile is, and how it’s likely to grow into significantly more revenue. “We’re just getting started,” said CEO Mark Zuckerberg, with regards to monetization.
“As proud as I am that a billion people use Facebook each month, I’m also really happy that over 600 million people now share and connect on Facebook every month using mobile devices,” he said. “People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company.”
The company reported $1.26 billion in revenues, beating analysts’ expectations.Revenue from advertising was $1.09 billion for the quarter (a 32% year-over-year jump), and 14% of that came from mobile. That number is likely to grow in coming quarters.
At one point, shares were up by as much as 21% at $24. As of the time of this writing, they’re starting to trickle down a bit, currently sitting at $22.77 (-0.46, -1.99%).
Facebook stock has performed notoriously bad in general since the IPO. The low for the company, so far, is $17.55. Shares debuted at $38.