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Facebook soars to an all-time high on the back of impressive profits

by , 05 November 2015

Yesterday, Facebook surprised the market with an excellent set of results. The social media giant is gaining traction.

Shares shot higher on release of the results.

Let's take a closer look at what's making Facebook so much money…

Facebook continues to grow rapidly

For the third quarter of its financial year, Facebook posted a rise in net income of 11%, bringing it to $891 million, reports the BBC. That’s up from $806 million for the same quarter last year.
Pushing revenues and profit higher was growth of the social media network over the period, says Fin24. This along with a surge “mobile users and advertising” helped push the company’s share price to a record high.
Shares in Facebook hit $109.34, a 5% rise on the day, says BDLive. The share shed some of its earlier gains to close at $103.94.

Facebook beat analyst expectations

This was thanks to Facebook’s results exceeding analyst expectations.
On a year-on-year basis, revenue grew 41% to $4.5 billion, better than a forecast of $4.37 billion, says Business Insider. Adjusted earnings per share came in $0.57 against expectations of $0.52. And average monthly users grew to 1.55 billion, higher than the forecast 1.52 billion.
The growth in users means Facebook added “60 million new monthly active users” over the quarter, adds the BBC. And this means more users to advertise to using Facebook.
And Facebook doesn’t see the pace of growth slowing down.
The COO of Facebook, Sheryl Sandberg, says their products are seeing growth “across the board,” says Fin24. There’s “a lot of growth in the future in emerging markets... and the next set of people who are not online”.
Facebook has certainly come up with the goods in its latest set of results. Investors holding shares in Facebook will be happy.
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Facebook soars to an all-time high on the back of impressive profits
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