Facebook posts astounding results
The stock price of Facebook surged more than 3% in after-hours trading, after posting better than expected quarterly results. The social media giant reported diluted earnings per share of $1.31 versus the estimates of $1.13, marking a 71% increase from the same period last year. Revenue was reported at $9.3 billion, which is 47% higher than a year ago.
The CFO of Facebook, David Wehner, said that ads are going to contribute less to growth in the following quarter. Facebook is looking to generate more revenue out if the news feed with Facebook TV – a long form video service is set to launch mid-August and ads placed in Facebook Messenger, messaging service with 1.2 billion daily users, is still in “early stages”.