Facebook Perched to Reach a Record High After Heavy Quarterly Gains

Facebook Perched to Reach a Record High After Heavy Quarterly Gains

Yesterday Facebook posted its second-quarter earnings that increased by 61 percent to $2.91 billion. It surely surpassed the average that for forecasted by the analysts.

Of all ad sales, mobile promotions accounted for 62 % that is an increase from 59 percent seen in the last quarter. The net income was seen to increase to $791 million which is more than double, with profit exclusive of a few items at 42 cents per share which was more than the projection of 32 cents.

The positive results played the trick on the shares of Facebook and send it to $75.45 in extended trading. It rose by 2.9 percent to $71.29 yesterday when the market closed in New York.

The increase underline how far Zuckerberg has managed to bring the social network since 2012 when it made its initial public offering. Its stocks had then plunged due to investors worrying over the lack of mobile revenue.

Now since Facebook's core business has been developed on ads on smartphones and tablets by the CEO, and the foundation with a mobile network has been used to spread the ads of the company all over the Web and wireless devices along with video promotions the effectiveness of ads have been boosted.

The shares of Facebook have an increased by a huge 173 percent in the last twelve months which is the biggest climb in the Standard & Poor's 500 Index.