Friends with Wall Street again? Facebook shares soar

Facebook shares were up more than 20 percent to $23.52 as of this post, the day after its third-quarter earnings slightly exceeded expectations.

The key was ad revenue. Wall Street seems to be heartened by what one analyst called “a very good start,” in making money from mobile ads, according to the Merc’s Brandon Bailey. The Menlo Park company reported an uptick in ad-revenue growth compared with the previous quarter, and said that $150 million, or 14 percent of ad revenue, came from mobile ads. “I want to dispel this myth that Facebook can’t make money on mobile,” Facebook CEO Mark Zuckerberg said during the earnings call, according to the New York Times.

And attention, Facebook users: You might be delighted to know that the company has “been very focused on getting more ads into news feeds — it’s one of our primary priorities,” COO Sheryl Sandberg told the Wall Street Journal.

Facebook did post a loss, however, as well as report that payments from Zynga were down from the previous quarter. When Zynga pre-announced earnings earlier this month and slashed its outlooks for the quarter and full year, Facebook shares tumbled along with Zynga’s. (See Zynga shares in TankVille.)

But struggling Zynga is cutting costs, and its shares were up more than 3 percent to $2.27 as of this post. The San Francisco maker of social games — most of which are played on Facebook — is due to release earnings after the markets close today. Tuesday, Zynga announced its first layoffs, and said that it is closing studios and eliminating some games.

 

 

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