Yesterday proved to be excellent for Facebook Inc (NASDAQ:FB) as the company’s shares hit their record high. Facebook’s shares exceeded $45 for the first time in the company’s history; the trading value for its shares was $45.05. In comparison to the S&P 500’s 15.7% increase, Facebook’s shares went up by 115.2% in the past 12 months.
This all-time high was mainly due to Android devices by Google and an increase in mobile apps by Apple’s iOS, both of which allowed Facebook to increase its pool of mobile customers. Mark Zuckerberg, Facebook’s CEO is focusing his efforts on attracting more users and pull in more money through allowing advertisements on tablets and smartphones, which allow the promotions to appear in photos and updates. With over 1 billion users, the social networking giant has simplified its process involving ad-buying. According to Facebook’s second quarter results, the company has generated 41% of its ad revenue through mobiles.
This amazing growth of Facebook Inc (NASDAQ:FB) is mainly due to the company’s focus on using its mobile users as a source of revenue generation. With an over $100 billion market capitalization, Facebook surged forward over 60%. This growth was a result of the announcement made by the company in July; according to the announcement Facebook’s promotion sales on mobile or wireless devices will help the company generate revenues from desktop users. Sales went up by 53% ($1.81 billion), which exceeded the average figure of $1.62 billion predicted by analysts.
According to a Wedge Partners’ analyst Martin Pyykkonen, advertisers find Facebook an extremely effective platform to market their products or advertise their services to their target audience. Mobile phones are fast becoming quite an important revenue source for Facebook because more and more users prefer to check their notifications and updates on their mobile sets. In this quarter, the percentage of wireless users who use their mobile phones for checking their Facebook updates reached a figure of 51% (819 million), which was more than the figure of 21% reflecting the total growth.
Facebook is not only capitalizing on mobile users, but also plans to carry out strategic acquisition that will help the company draw more revenue through its huge consumer pool.
In the premarket, shares of Facebook Inc (NASDAQ:FB) went up by 0.56% ($45.00).