Facebook’s Revenues High Than Expect but Stocks Still Drop
While Facebook’s fourth quarter earnings were better than estimates, the company’s stock still fell 9% in after hours trading.
Facebook’s revenues for last quarter were $1.59 billion, up 40% from the same period in 2011 and above the estimated $1.53 billion. Over all Facebook generated just over $5 billion in 2012.
Most of the revenue growth came from advertising, $1.33 billion in the fourth quarter, mobile adverts accounted for 23% of the total ad revenue, up 14% from the previous quarter.
Mark Zuckerberg said that the earnings are proof that Facebook has become a mobile company.
Furthermore the number of daily active users on mobile has surpassed the number of desktop users for the first time.
Facebook stock climbed back from a low of $17.55 a share in early September to $31.24, a 75% gain in under five months. Much of this growth is the result of Facebook’s previous earnings report which showed the company was being to monetise on mobile.
However, despite the progress, Wall Street appears to be mixed over the latest earnings announcements. There were high expectations in recent weeks with analysts predicting mobile ads accounting for at least 25% of the company’s total ad revenue.