After reporting its second quarter earnings on Wednesday, Facebook’s stock is surging and so is Mark Zuckerberg’s net worth.
It is trading at the highest price since Facebook’s IPO in May 2012. The stock opened then at $38 per share; it closed yesterday at $34.36 up from the low 20s. The nearly 30% increase means Mark Zuckerberg, who vowed not to sell any of his shares during Facebook’s first year as a publicly-traded company, is worth $3.7 billion more today than he was yesterday morning.
The sudden faith in Facebook stems from its visible improvement in mobile. During Wednesday’s earnings call, Zuckerberg noted that 41% of Facebook’s total ad revenue was coming from mobile, up from 30% the quarter prior. Mobile monetization is something investors are watching closely; the unsuccessful transition from a desktop to a mobile experience is killing other companies quickly.
Facebook’s revenue also beat Wall Street expectations on Wednesday. The social network reported revenue of $1.81 billion versus the $1.62 billion analysts were expecting. Importantly, Facebook’s mobile monthly active users are also rising. Facebook reported mobile MAUs of 819 million, up 51 per cent year over year.
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