Facebook bucks tech trend with strong Q1
After underwhelming results from Apple, Google and other big tech names, investors finally found a friend in Facebook after the company beat Wall Street's forecasts for revenue, profit and user growth.
Facebook's shares jumped 11pc to a record high of $120 in early trading yesterday, giving a $30bn boost to the social networking company's market value. Facebook's ad revenue jumped 57pc to $5.2bn in the first quarter. Mobile ad revenue accounted for about 82pc of total ad revenue, up from about 73pc a year earlier. "FB remains in a class by itself across the combination of scale, growth, and profitability," JP Morgan Securities analyst Doug Anmuth said in a research note. "While there are broader concerns of macro softness toward the end of 1Q, Facebook isn't seeing them."
Apple lost about $36bn in market value on Wednesday after it reported disappointing earnings the previous day, while Alphabet shed nearly $30bn after missing expectations.
Analysts say Facebook continues to generate very high and very profitable growth. (Reuters)