Facebook Shares Soar to New All-Time Highs after Blowout Q2 Earnings

facebook-fb-logoSocial media king Facebook Inc (NASDAQ:FB) on Wednesday after the bell posted second quarter results that trounced analyst estimates, spiking the stock nearly 7% in after hours trading.

Profit and Revenue Explode, Driven by Mobile

FB’s Q2 earnings were $0.97 per share, easily beating Wall Street’s view of $82. Revenue surged 59.2% from last year to $6.44 billion, also besting analysts’ view of $6 billion.

As you’ll see next, mobile ad revenue growth was especially impressive.

More Metrics for Your Viewing Pleasure

Admit it, you love data. We do too. Here’s some more data from Facebook’s report:

  • Daily active users (DAUs) rose 17% from last year to 1.13 billion. That’s up slightly from Q1 growth of 16%, and in-line with Q4 growth of 17%.
  • Mobile DAUs were 1.03 billion, up 22%. That growth has started to slow, with Q1 at +24% and Q4 at +25%.
  • Monthly active users (MAUs) were 1.71 billion, up 15% year over year.
  • Mobile MAUs were 1.57 billion, up 20%.
  • Mobile ad revenue represented 84% of total advertising revenue. Analysts expected a lower proportion of 82.7%. This ratio is growing fast, with last year’s Q2 proportion of mobile ad revenue at 76%.
  • Capital expenditures were $995 million in Q2.

How Much More Upside?

Like its fellow tech behemoth Apple (NASDAQ:AAPL), Facebook will beginning running into the law of large numbers conundrum. Not only have revenues surged so much that their growth may be unsustainable, but the company is now so widely owned that there aren’t too many buyers left you would think.

That’s just about the only negative thing to be said about FB these days, as they are clearly firing on all cylinders.

FB-2016-07-27

Facebook shares, which have gained 27% over the past year and nearly 18% year-to-date, ran up another $8.09 (+6.56%) in aftermarket trading Wednesday to new all-time highs of $131.43.

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