Facebook Stock Rides Mobile Ads to All-Time High

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July 24 (Bloomberg) -- Bloomberg’s Cory Johnson examines the business of Facebook as the company hit an all-time high stock price this morning following second-quarter results that showed great increases in mobile advertising. He speaks on “Market Makers.”

Watch "the view" so i didn't have the opportunity to go through the numbers until late last night, early this morning.

There is a lot of impressive changes going on in facebook.

We expected it would continue.

We see important changes in the way they do business.

We looked at the nascent payments business and thought, gee, if they could grow that beyond the zynga -- it is actually falling for this company is much more advertising -dependent and the shift to mobile has been fantastic to them, as opposed to the threat it appeared to be when they went public in two years ago.

Do you remember when they went public?

One of the biggest albatrosses they had is how they get around mobile and now they are the ones dominating it.

I don't think they quite gamed the ipo but they were very forthright, maybe overly so, in terms of warning that they had nothing going on mobile.

We learn -- in fact, they were working diligently on it.

Mark zuckerberg wrote his letter to shareholders on the ipo filing on a mobile device.

Clearly that shows how important it focuses on mobile.

Mobile revenue is up 24% sequentially.

Mobile is now a majority of their advertising revenue, which it wasn't even the right go.

And the revenue per mobile at has been increasing a lot.

I was looking at research showing that facebook's even top margins -- ebitda margins -- yeah.

Are some of the highest that any company this size have reported.

Google reported that in 2009 but it was a one-off will stop this research shows that when google was facebook's size, it's ebitda margins were like cap.

Is that to suggest -- were like half.

Is that to suggest that facebook is getting higher or will it have to live in a little -- a world of lower margins?

My own model -- i mentioned ebidtda margins.

Looking at operating margins, slightly different.

The non-cash expense that that's particularly weird around the ipo, and starts to level out over time.

You can see a clear trend there, and it is amazing.

They did some things around the ipo where they took a big r&d charges, vast portions of research and development in particular.

It of skewered what might be happening -- it obscured what might be happening and make you wonder what they would do in the future.

What those numbers show us is that the company is getting more and more profitable.

It is still growing, they're still building a new campus in every thing else.

There is sort of a cap on the amount of expenditures.

They said going for the margins will look a little bit better than they have been in the past did a really powerful profit story here just straight from the income statement.

Soccer competition charges, the appropriate thing to do -- not always the case, but in this case it is appropriate to show how strong this business is.

Continue about how to charge -- the fewer ads, it is a powerful story.

Speaking of powerful, cory,

This text has been automatically generated. It may not be 100% accurate.


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