After the company has announced good second-quarter earnings, Facebook stock reaches record high.
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The $6.44 billion (5.8 billion euros) it made came, to a great extent, from surging sales of its video and Instagram ads.
According to eMarketer, Facebook’s global ad revenues will account for more than two-thirds of all social media revenue in 2016.
It also added 60 million new users, bringing its total to 1.71 billion users, compared to analyst predictions of 1.69 billion.
Given the importance of mobile to Facebook’s advertising business and its emphasis on video, the new features showcase Facebook’s dedication to providing users with the best possible experience, regardless of medium and device.
Facebook has had another exceptional quarter for growth with profit up 186 per cent year on year.
Shares of the social media giant jumped 7 per cent in after-hours trading.
Facebook is also proving adaptable as the industry shifts towards mobile and video – particularly when compared to Twitter’s recent struggles in that regard.
The company now has 1.71 billion monthly users, a surge from 1.65 billion in the previous quarter.
Facebook has also increased the functionality of its Messenger service, which passed one billion users earlier this year. The company is gradually strengthening its stance in the mobile video market, a space that is now being dominated by YouTube and Snapchat.
There were critics, however, BI reports – including academic Zeynep Tufekci, who argued the research was conducted on “a small, skewed subset of Facebook users”.
Meanwhile, 360-degree images and VR content are becoming increasingly important to Facebook too. Facebook now sees 2bn searches per day, up from 1.5bn past year, and Zuckerberg said that a move into search advertising was on the cards, but was likely to be far down the line.
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The company posted quarterly revenue of $602 million, up 20 per cent year-over-year and reported $107 million GAAP net loss ($0.15 per share) with quarterly non-GAAP net income of $93 million ($0.13 per share).
