Facebook reported a strong second quarter performance on Wednesday, with sales growth beating analysts’ estimates and mobile ad revenue growing by more than 50 percent. The social media giant has made mobile advertising a priority in recent times, with ads becoming more and more regular on the Facebook and Instagram apps.
Mobile ad revenue accounted for 87 percent of the company's total advertising revenue of $9.16 billion in the latest quarter, up from 84 percent a year earlier.
Chief Executive Mark Zuckerberg said the company will now focus on monetizing its two messaging services, Messenger and WhatsApp, which have more than 1 billion users each. "I want to see us move a little faster here but I'm confident that we're going to get this right over the long term," Zuckerberg said in a conference call.
Shares in the company rose more than 4 percent to about $173 in after-hours trading.
In contrast, Twitter’s shares have dropped more than 10 percent in premarket trading after the company recorded zero subscriber growth in Q2. The company cited “lower seasonal benefits and other factors” for the poor showing on the monthly user metrics.
Twitter had 328 million average monthly active users (MAU) in the three months through June 30 - the same number it reported after Q1. Analysts were expecting the company to add around four million new users last quarter.
In the United States, Twitter's average monthly active users decreased by 2 million in the quarter, declining to an average of 68 million for Q2.
After boosting its monthly user base by 9 million in the first three months of the year, Twitter shares had increased by up to 40 percent as investors anticipated another strong quarter. After the latest earnings were revealed, the shares fell more than 10 percent to $17.63 in premarket trading on Thursday.
This is yet another setback for the California-based company. It has been making efforts to boost revenue through livestreaming deals in recent months, but lost a deal to livestream NFL games earlier this year to Amazon.
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