Facebook Inc. Reported An All-Time High

The social media giant reported excellent results for the previous quarter due to which it witnessed a new all-time high.

On January 29, 2015 Facebook stock went up by 2.5 percent during the opening hours of the trade and was being traded at a share price of $111.94, reaching a new all-time high. This surge in the stock was surely due to the incredible quarterly financial results that were reported by the social media giant earlier. Fiscal Year 2016 has provided to be quite an exciting one for the social media network yet as the stock has gone up by 6% ever since the start of the New Year.

Despite the fact that the Dow Jones Index fell by 7% since the beginning of the year; Facebook Inc. still managed to outperform it. The revenue for the previous quarter reported by the tech company was $5.84 billion however the analysts had predicted it to be at $5.37 billion – the organization easily managed to outperform the analyst’s estimations. A 52% year over year growth can be observed in the revenue. The networking website beat the financial analyst’s calculations of the adjusted earnings share as they had though for it to be 68 cents while according to the report it clocked at 79 cents.

Additionally, an analyst from Piper Jaffray, Gene Munster gave his views on the stock of the company after it reported strong quarterly financial results. According to the stock expert, a rating of Overweight along with an incline in the target price was suggested. The target price was initially $155 and went up to $175.

The strong performance during the initial quarter was earned mainly because of the company’s performance in the mobile service. Not long ago back in 2012, the business was making absolutely no profit from mobile advertisement – the business was around 23% however now 80% of the revenue is generated via mobile ads which amount to $5.6 billion. This growth in advertisement is a result of 21% year over year increase in the monthly active users.

Subsequently, advertisement is not the only division in which the company is investing heavily and enjoying maximum revenue; another such department that the social giant is working on is virtual reality. The chief executive officer, Mark Zuckerberg stated on the conference call that the networking site is in the initial stage of an ecosystem for its instant messaging service, WhatsApp and photo sharing service, Instagram. The organization wants to work on these apps thoroughly and create an ideal experience for the user before they monetize it.

Investors seem very excited to see what the Silicon Valley giant will unveil during the upcoming months. They remain quite optimistic and a number of analysts have given their recommendations for the target price suggesting an increase of 30% to 60%.

On the other hand, it has also given the live video streaming and broadcasting another shot. During the last days of the previous year, it was testing the new feature of live broadcasting and video streaming – which evidently went well for the company since it has decided to release the feature for the rest of the world.