Facebook market value soared by $38 billion in trading on Thursday, vaulting the company ahead of Amazon. com after the social networking service's quarterly results blew away expectations on every key measure.
Facebook’s stock jumped more than 14 per cent to $107.95 after the company reported a blockbuster quarter on Wednesday, pushing the company’s market capitalization over $300 billion.
That made it the fourth most valuable technology company, overtaking Amazon, which was valued at about $290 billion ahead of its results later on Thursday.
At least 22 brokerages raised price targets on Facebook’s stock, with most analysts focusing on a far better-than-expected the 81 percent jump in revenue from mobile ads.
Facebook's strong quarter contrasted with a disappointing performance by Apple which is worth about $519 billion, making it the most valuable US company.
“Facebook has built a remarkable ad platform that enables marketers of all stripes to serve targeted ads to nearly every consumer on the planet,” Jefferies analysts wrote.
Facebook said it had 1.59 billion monthly active users as of December 31st – about one in every four people in the world.
Mobile ad revenue accounted for 80 per cent of the total ad revenue in the quarter compared with 69 percent a year earlier.
Google-owner Alphabet, valued at $500 billion and closing in on Apple, will report results on Monday.
- Reuters
