On Wednesday July 27, 2016, Social network giant Facebook Inc (NASDAQ:FB) has reported another outstanding quarter of growth, with profit jumping 186% from similar period last year.
Facebook Inc (FB) managed to earn $2 billion in the period from April to June, up from $719m in 2015.Analysts were expecting revenue of $5.8 billion, and Facebook even beaten those tall expectations grabbing $6.4 billion in revenue.
Company added about $5 billion to its market capitalization and briefly touched a valuation of about $362 billion after the announcement.
Chief executive Mark Zuckerberg noted that he is predominantly pleased with the growth in video. “Our community and business had another good quarter,” he said, “We’re particularly pleased with our progress in video as we move towards the world where video is at the heart of all our services.”
According to Bloomberg, Company stock jump also sent the net worth of Zuckerberg, soaring to $US56.4 billion, past that of either Charles or David Koch, oil barons who are worth $US54.8 billion each.
Facebook was trying to encourage businesses to experiment with video and rolling out new advertising platforms for mobile ads.
Mobile advertising rose to 84% of Facebook’s ad revenue in the latest period up from 76% last year. The company has profited from an entry of advertising money moving away from television and on to digital platforms.
The number of monthly-active-users, a key measurement for advertisers rose by 15% to 1.71 billion as of 30 June 2016. In contrast, Twitter’s MAU rose by mere 3% in that period.
The number of daily active users surpassed one billion for the first time. The time spent on the site by daily users also rose.
According to Bloomberg, Facebook’s stock jump also sent the net worth of Zuckerberg, soaring to $US56.4 billion, past that of either Charles or David Koch, oil barons who are worth $US54.8 billion each.
Facebook has been pushing new services, including photo and video-sharing on Instagram and its messaging apps.
The company has also made advertisers to try new ways of getting their targets, including the new Facebook Live feature, where users can watch live streaming videos.
Facebook Inc (NASDAQ:FB) revenue increased in all parts of the world, rising 19% in Asia and 21% in Europe.