Facebook's Mobile Video Ads Boost Sales Growth Above Projections
- Company continues to increase use of social network, Instagram
- Mobile advertising fuels Facebook’s 45% quarterly revenue gain
Breaking Down Facebook's Second-Quarter Earnings
Facebook Inc.’s investors are salivating over the revenue potential for the company’s chat businesses, Messenger and WhatsApp, after Chief Executive Officer Mark Zuckerberg said he’d like to move “a little faster” to make money from them.
The company has warned that sales growth, fueled primarily by mobile advertising, will slow because it can’t keep loading ads into users’ news feeds on its main social network. Both of Facebook’s chat apps have more than 1 billion users, though neither contributes significant revenue yet. After the company’s earnings report Wednesday, Wall Street decided these apps are the answer to the growth challenge, and Zuckerberg’s comments sent the shares up as much as 4.7 percent in extended trading.