Facebook Shares Spike; Quarterly Revenue and Profit Surpass Forecasts
On Wednesday, Facebook Inc posted strong growth in revenue and profit for the quarter. The largest social network in the world is growing bigger with a larger user base as number of mobile users increase and advertising also lifted its stock to an all-time high.
The company reported the number of audience on Wednesday which hinted that it is ready to compete with the mainstream media in form of a popular advertising force. The promising results helped investors to ignore the massive spending that has been initiated by Facebook for hiring more employees and building new data centers.
Compared to the four billion views of videos in April, now Facebook has double the number at eight billion video views every day, seen by five hundred million people.
As on September 2015, Facebook had 1.55 billion active users on a monthly basis which is a fourteen percent increase compared to a one year earlier. Out of these numbers 1.39 billion of the users reach out for the service via their mobile devices.
Facebook's spending of $3.0 billion is an sixty eight percent compared to last year's third quarter and that actually did not seem to worry either the investors or the analysts.
Shyam Patil of Susquehanna Financial Group said, "I think the investors would like the company to continue to invest given that the opportunity is pretty large."
The stocks of the company increased approximately five percent to $109.34 during the extended trading hours.
United Kingdom News
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