July 28: Shares of social media giant Facebook rose 6% to hit a record high of about $175 in after-hours trading on Thursday. This came after its mobile advertising business grew by more than 50% in the second quarter. Notably, mobile ad revenue accounted for 87% of the company’s total advertising revenue of $9.16 billion in the latest quarter
Mobile advertising has been a key marker for investors in terms of Facebook’s successful transition to mobile and its capability to sustain growth. Although the company has indicated it plans to stop increasing the frequency of ads in the News Feed to avoid annoying users, it plans to introduce ads to Messenger and increase ads in Instagram.
For the quarter, Facebook reported 1.32 billion daily active users, an increase of 17% on the equivalent period a year ago, and 2.01 billion monthly active users, also up 17%.
WhatsApp has reportedly grown to 1.3 billion monthly users, with a billion daily users, while WhatsApp Status, launched six months ago, has more than 250 million daily users, compared with Snapchat’s 166 million daily active users.
Facebook founder and CEO Mark Zuckerberg has been quoted by a report as saying that the company had a good second quarter and first half of the year and the community is now two billion people.”
Facebook also continues to spend money building its video platform, courting top performers from YouTube and improving Facebook Live to entice more people to use it. This effort also aims at taking advertising dollars from the television industry and expanding the time individuals spend on Facebook. Zuckerberg also added that video would be a significant driver of Facebook’s business in the next two to three years.