By MarketWatch
SAN FRANCISCO (MarketWatch) ? Facebook Inc. investors who are also users have probably noticed an increase in the ads in their news feed when they are using the social network.
Facebook CEO Mark ZuckerbergAnd as annoying as those ads are, they are filling Facebook?s /quotes/zigman/9962609/quotes/nls/fb FB +1.45% ?coffers, which helped goose the company?s strong second-quarter results well above Wall Street?s estimates and sending the stock jumping nearly 17% n after-hours trades ? putting the shares above the $30 mark for the first time since early February.
On the conference call, Chief Executive Mark Zuckerberg did note that the company is working on improving the delivery to make the ads more relevant to each individual using Facebook.
For the quarter, 41% of Facebook?s total $1.6 billion in advertising revenue coming from mobile advertising, or about $656 million in mobile ad revenue. One analyst, Victor Anthony, of Topeka Capital Markets, for example, had been expecting about $435 million in mobile ad revenue.
Zuckerberg told investors at the outset of the call that the company will eventually see more revenue from mobile than standard desktop ads.
Facebook surprises investors
Facebook shares jumped nearly 20% in after-hours trading as Facebook surprised investors with big gains in revenue, earnings and active users for the second quarter on Wednesday.
The company also said that user engagement was still high, and that in fact people are spending more time on Facebook. Company executives also said that based on their data, they do not believe fewer teens are using the network, a constant fear of some investors who are on the social network more than their children. Still, Zuckerberg noted that teens lie about their age and that it is hard to measure.
Even with the after-hours jump, Facbook shares remain well below their $38 IPO price. Whether the stock will ever return to that level will be a big question for weeks to come, and the company will likely face tougher revenue comparisons in the next few quarters, because news feed ads started in the third quarter of last year.
But for now, investors seem happy with the company?s progress in mobile.
-Therese Poletti
/quotes/zigman/9962609/quotes/nls/fb
US : U.S.: Nasdaq
Volume: 40.97M
July 24, 2013 4:00p
Source: http://feeds.marketwatch.com/~r/marketwatch/internet/~3/xQvn7AO30o4/story.asp
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