What You Need to Know: Facebook Earnings

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July 24 (Bloomberg) -- Jon Erlichman takes a look at the Facebook's growth on Bloomberg Television's "Market Makers." (Source: Bloomberg)

John ehrlichman, has a preview.

Mind blowing things about this book, how many people use it.

At the end of march, more than 1.1 billion people actively using the site each month.

Wedbush securities estimates that may have climbed by 50,000 users in the past month alone.

That may have helped to generate $1.6 billion in the second quarter.

Compare that to google with sales over the same stretch north of 11 billion.

This might be 37% through last year.

The stronger growth through google in stronger growth in its own business 12 months ago.

Most of the revenue comes from advertising.

Facebook has been actively moving -- moving customers.

38 percent of the second quarter advertisement sales were advocated 2 stones and tap -- allocated to funds in tablets.

Keep an eye on instagram.

When it bought the photo-sharing service, 22 million people actively using it each month.

The number has soared to more than 100 million by this spring.

You mentioned that 38 percent.

38 percent of the advertisement sales could come from mobile products and tablets.

That is what everyone is focused on.

Very controlled by facebook.

It really is.

People have been excited because it went from 14% to 23% to 30% and could climb again this quarter.

Even though facebook talk a lot about this number, they have a lot of work -- of control over what the number is as they shift advertiser money.

Not that there is really a problem with that.

It is good for their business.

They want more options taken place.

That boosts the price is for advertisements.

When they talk about it today, remember that they have a lot of control over that number.

For those who bought the shares at the ipo price, $30 and still holding, what is going on there?

Pretty amazing.

You think about the stock would need to rally something like 45% to get back to the level of $38 per share.

That is why a lot of people continue to be sour.

This has not been a spot growth story, a growth story from a business perspective.

The one thing we did not talk about even though the revenue is climbing, keep an eye on costs, because those are skyrocketing from table to the infrastructure they need to continue building the business.

The higher those those, that can affect profit margin.

We will keep an eye on you throughout the coverage of facebook earnings after the bell.

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

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