Facebook Doubles its Profit Through Mobile Ads
With increased mobile usage, mobile advertising continues to make up a bigger share of Facebook’s revenue pie. Mobile ads accounted for 62 percent of the company’s $2.7 billion in ad revenue for the quarter, up from a 59 percent share in the previous quarter and a 41 percent share during the same period last year. It’s a stark turnaround from Facebook’s early days as a public company, when the social network’s stock tanked on fears that it couldn’t convert its growing desktop business to mobile.
Facebook now has 1.32 billion monthly active users, an increase of about 40 million from the previous quarter. Mobile usage continues to grow, with the social network now having 1.07 billion monthly active users on mobile devices, up from 1.01 billion in the previous quarter.
The company’s shares, which touched a high of $76.74, were up 7% at $76.31 by midday on the Nasdaq. At that price, Facebook’s market value is just short of $200 billion, putting the company in a position to overtake IBM Corp as the fourth-largest US-listed tech company.
The top three are Apple Inc, Google Inc and Microsoft Corp. At least 28 brokerages raised their price targets on the stock, by as much as $15 to a high of $100.