According to a Q2 earnings report, Facebook hit a record high stock price of $123.34, earned $6.44 billion in revenue beating all previous estimates, and added 60 million active users to its 1 billion plus fan base.
Although its growth slipped at 3.63 percent from Q1’s 3.77 percent, the social media giant now has 1.71 billion active users every month and has just celebrated the 1-billion-daily-mobile-user milestone.
In the wake of the report, the company’s shares traded in after hours for $132.60. When Facebook first became public, the initial stock price was $38 per unit. Analysts noted that the tech company’s revenue grew 59 percent from one year to another.
By contrast, other tech companies were not as fortunate. For instance, Twitter’s revenue growth plunged 20 percent from last year’s levels.
Nevertheless, in Facebook’s case the monthly—active-user (MAU) indicator is not as reliable as the daily-active-user (DAU) indicator when assessing the firm’s status. Facebook now has 1.13 billion daily users, which is a 17 percent increase from last year, and 1.57 billion monthly users (a 20 percent rise).
The figures challenge the media reports that the platform’s user base may be shrinking as the app is getting older.
The icing on the cake, however, was the news that Facebook users do 2 billion searches on a daily basis. In 2015, that figure was around 1.5 billion.
Facebook founder and chief exec Mark Zuckerberg believes that the rise in traffic is linked to people searching for other people’s opinions on various topics just like on Twitter. Still, Facebook does not plan to make money off of searches just yet.
Facebook now boasts a $2.05 billion in profit for 2016 and sits on a $23 billion worth of money pile which may be later used for more acquisitions.
The company’s financial results are staggering despite a series of negative reports in the media over the last quarter.
For instance, Facebook has been slammed for relying on bias when displaying stories in the News Feed feature (an internal investigation proved the rumors wrong but the company pledged to revamp the feature’s algorithms).
Other reports suggested that the tech company might listen to its users’ phone calls through the phone microphone in order to better personalize ads (the company denied the accusations in a lengthy blog post). Earlier this year, a study found that Facebook friends do not help users stave off depression, while another report suggested that ISIS terrorists sell weapons and ammunition via the social networking site.
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