Facebook Smashes Earning Estimates

Photo of author

By Jacob Maslow

Tech giant Facebook reported earnings and revenue far above analysts expectations yesterday, sending the stock price soaring as investors piled in for a piece of the pie.

With expectations of 68 cents per share on the street, Facebook delivered 79 cents and reported quarterly revenue of $5.84 billion, as opposed to the estimated $5.3 billion.

Shares jumped more than 12% in after-hours trading as investors piled in for a piece of the pie. Facebook also reported an increase in users, estimating that it will have 1.59 billion active monthly users by the end of this quarter.

Reporting numbers related to the social media platform itself, Facebook said that over 90% of users are now accessing the site on mobile devices and that more than 100 million daily hours of video are watched across the platform.

Facebook is expanding into developing countries rapidly, with plans to offer free internet access, including access to Facebook, being taken up in Bolivia, the Philippines, Indonesia and more.

The company reported earnings of $3.73 per user, a bigger number than the $3.43 estimated by analysts.

While the global economy contracts and stock prices tumble, it seems that the internet isn’t affected, at least in the case of Facebook!

Images Courtesy of DepositPhotos