The world's largest social media network demolished investors' expectations with a 52 percent surge in its quarterly revenue, solely thanks to an increase in its mobile and video views.
Facebook Inc. on Wednesday reported its fourth quarter and overall 2015 earnings, revealing that it now makes an average of $3.73 off of each user globally. In North and Central America, the figure is $13.54 - almost $4 dollars higher from that during third quarter.
It's largely impressive, because the consideration of mobile and video views is relatively new ventures for the internet company.
It's also because the increase in mobile and video views led to Facebook shares rising almost 12 percent in after-hours trading to $105.32. The stock closed at $94.45.
For weeks now, tech giants such as Apple, Twitter and eBay have been plagued by worries due to underwhelming tech results. Facebook jumped over that hurdle, exhibiting spectacular growth in the face of economic uncertainty around the world.
The social media site said mobile advertising now accounts for 80 percent of its revenue, and its dominance on the sector helped to dispel concerns over its heavy investment in virtual reality unit Oculus and messaging service WhatsApp. Oculus has not yet produced profits.
Analyst Rob Sanderson of MKM Partners said Facebook's core business is so strong that many people won't be scrambling for them to start monetizing other properties anytime soon.
Facebook's analysts and executives are now focusing more on how the company's other investments are working. After returning from a two-month paternity leave, CEO Mark Zuckerberg outlined some of those plans. He said virtual reality signifies the next major computing platform.
"This Oculus launch is shaping up to a big moment for the gaming community," said Zuckerberg, emphasizing the fact that VR has potential to change the way people live, work and communicate.
"The launch is an important step towards the future, and we're really looking forward to seeing how people use it," he said.
Zuckerberg also noted the company is going strong with its messaging space, Messenger and WhatsApp. The company also has Instagram, which has become an important second advertising platform for the company. Instagram also continues to add users.
As of Dec. 31, 2015, Facebook has 1.59 billion monthly active users, where 1.44 billion use the social media site on their mobile devices, according to market news analyst FactSet StreetAccount.
