Facebook Inc Posted a Better than Expected Revenue with Boost in Mobile Advertisement Sales
On Wednesday, Facebook Inc once again reported a better than expected quarterly results. The company's quarterly revenue climbed more than fifty percent mainly attributed to its extremely popular mobile app. Its live video also attracted new advertisers and also lured the existing advertisers to increase spending.
Shares climbed 9.5 percent to $118.39, during the after-hours trading followed by the news. The shares are on their way to attain a new high on as markets open on Thursday. The shares have almost tripled compared to its initial IPO four years back.
The company said it plans to create a new class of non-voting shares. Those would be given as dividend to existing shareholders. Google's parent Alphabet Inc also passed a similar proposal in 2014 which ensured the control of it founder's by creating non-voting shares.
As of March, 1.65 billion people used Facebook on a monthly basis that's an increase from 1.44 billion one year back. According to CEO and co-founder, Mark Zuckerberg, users were spending fifty minutes of more every day on Facebook, Instagram and Messenger. That's a lot of time considering millions of apps which are available to the users.
For the advertisers, there has been a shift in spending to web and mobile platforms from television in recent times and Facebook also got the advantage.