Facebook's post-IPO struggles can be baffling to the average person. How can a company with over a billion active users be experiencing so much trouble with its stock price--and revenue building in general? But those troubles may be behind the social network after a better than expected third quarter earnings report. And in a flurry of not-so-great earnings news from other companies, Facebook is reaping the benefits.
On Tuesday, CEO Mark Zuckerberg told the world that Facebook had beat Wall Street's predictions by a penny, and that its revenue from mobile advertising - long a weak point for the company - was up to 14%. He also announced that revenue was up 32% overall from the same time last year, and that adjusted share earnings came in at 12 cents.
This all came on the heels of an earnings report mishap that saw Google's stock prices fall 9%, when the company accidentally filed its report with the SEC ahead of schedule. Beyond the early filing debacle, Google's report revealed its own struggle with mobile monetization. With the mobile boom in the mix, the cost-per-click price for Google advertisers was down 15%. CEO Larry Page tried to put a happy face on it, saying on a conference call that the disruption is only temporary, while the mobile boom is still new. But with income down 20% from last year, investors may remain skeptical.
In light of the not-so-good report from Google--one of Facebook's closest competitors--the good news for Facebook just keeps coming as CNET reported,: "The social network's shares have soared in early trading today, jumping 23 percent to nearly $24. Facebook closed the day yesterday at $19.50."
Zuckerberg has been trying to reassure investors that the company was dealing with its mobile problems since the IPO, but this earnings report seems to be then proof the masses needed to finally believe the social media giant was going to make good on its word.