Facebook financial report leads to big stock jump

Eric Abent - Oct 24, 2012
Facebook financial report leads to big stock jump

Yesterday, Facebook delivered its earnings report for quarter 3 2012, and things weren’t bad. For the most part, results were up year-over-year, and in some cases, Facebook’s earnings even beat analyst expectations. Perhaps the biggest news was that mobile advertising accounted for 14% of all of Facebook’s advertising revenue, which was definitely encouraging for investors who feared that mobile would be Facebook’s downfall (in a manner of speaking, at least).

It made investors so confident, in fact, that Facebook’s stock made its single biggest gain today since the company’s IPO earlier this year. Mercury News reports that Facebook’s stock climbed as high as 24% today, trading over $24 at some points. That has settled down a bit, as Facebook’s stock ended the day at $23.23, but that’s still up $3.73 – a 19.13% gain.

That definitely isn’t anything to stick your nose up at, though it is still quite a bit lower than the $38 Facebook’s stock started at. Regardless, this news has to have Mark Zuckerberg and his executives smiling today, and hoping that this boost becomes more of an upward trend. Make no mistake, there’s still plenty of work to be done in the mobile space, but what Zuckerberg has done so far seems to be winning over investors.

Now all Zuckerberg needs to do is focus on growing mobile ad revenue, which seems like it shouldn’t be too hard now that he has his foot in the door after yesterday’s earning report. If Zuckerberg and his team can keep the mobile cash coming in, then you can bet investors will reward them by making that stock price climb even higher. Stay tuned.

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