On Wednesday, Facebook shares rose 15%, beating estimations by a long shot. However, the company did comment on the lose of teen users of the social media site, which contributed to a dip in stock. “We did see a decrease in [teenage]daily users [during the quarter], especially younger teens,” Facebook chief financial officer David Ebersman said Wednesday. In addition, Facebook’s announcement that it won’t be increasing the number of ads on the site’s feeds, led to lower shares in later hours of the trading.
Regardless, the 15% increase in shares earlier in the day beat out Wall Street’s sales and profit expectations for the quarter. Facebook’s sales also increased 60% over the course of the year for a total of $2 billion. The company’s profit was double what it was a year ago, coming in at $621 million.
The rise in mobile business for the company also resulted in some growth, and mobile ads are not 49% of Facebook’s ad revenue. Investors were relieved when the ads proved successful, as the company has said last May that it wasn’t making “any meaningful revenue” from more mobile business.
