Facebook shares surge after mobile revenues rise
SHARES in Facebook surged the most since the company went public yesterday, after investors cheered a sharp increase in mobile revenues.
The company jumped by more than a fifth to $20.59 yesterday, leading the Nasdaq index in New York, a day after posting better than expected third-quarter results.
Mark Zuckerberg's company reported an overall loss for the three months to the end of September, but that was overshadowed by the revelation that the company had gained revenue from mobile users of around $150m (€115m) -- about three times as much as analysts had estimated.
That number eased concerns analysts had about the company's long-term future. Ahead of its IPO in May, Facebook revealed it gained little revenue from its mobile offerings.
After listing at $38, the stock fell to as low as $18 before bouncing back yesterday.
"This certainly dispels the most bearish view, that Facebook couldn't monetise people on phones or tablets," said an analyst with Robert Baird & Co.