Facebook's mobile ad revenue doubles in fourth quarter
- Indo-Pak NSAs meet in Bangkok, discuss terrorism, J&K
- Schools, colleges to remain shut in Chennai; full-scale flight operations to resume tomorrow
- No problem with Kejriwal's odd-even formula, won't mind taking bus to work: CJI
- Screaming 'this is for Syria', man stabs three at London station
- In Delhi, odd-numbered cars to run on Monday, Wednesday and Friday
Facebook Inc doubled its mobile advertising revenue in the fourth quarter, a sign that the No. 1 social network is seeing early success in expanding onto handheld devices as more of its users migrate to smartphones and tablets.
Investors want to see evidence that CEO Mark Zuckerberg's 8-year-old company is delivering on promises to develop a full-fledged mobile advertising business, a challenge facing many of today's technology leaders including Google Inc .
But the growth trailed some of Wall Street's most aggressive estimates. Shares of Facebook were down roughly 3 percent at $30.21 in after-hours trading on Wednesday, regaining ground after falling more than 8 percent immediately after the numbers were released.
Mobile revenue estimates among some analysts and investors were unreasonably high, said Sterne, Agee & Leach analyst Arvind Bhatia.
"As a result the stock was set up for disappointment," he said. Overall, he said, Facebook's results were encouraging.
The company's overall advertising business grew at its fastest clip since before its May initial public offering, helping the company's revenue expand 40 percent and surpass Wall Street targets.
Facebook has rolled out a wide variety of new services in recent months as the company seeks to stay ahead in the fast-moving Web market and to convince Wall Street that it can turn its audience of more than 1 billion users into a sustainable business.
Zuckerberg said the company plans to spend heavily to recruit talent in 2013 as the company pushes forward with new product development, particularly "mobile-first" services.
"We aren't operating to maximize our profit this year but we're doing what we think will build the best service and business over the long term," Zuckerberg said during a conference call with analysts on Wednesday.
The strategy makes sense for an Internet company, said Stifel Nicolaus Jordan Rohan. But it will force Wall Street analysts to "ratchet down" their profit expectations.
- Chennai Floods: The burden of bravery
- Paris climate summit underlines progress depends on innovation and global partnership
- MP’s agricultural growth rates offer important lessons for the Centre
- In a divided social milieu, ‘sabka saath, sabka vikas’ is an idle fancy
- AuGrav customised jewellery: All that glitters is now 3D
- Across the aisle: How to lose a friend and alienate people