Facebook Shares Soar 22 Percent In The Wake Of Quarterly Earnings

Wall Street is responding with enthusiasm to Facebook’s earnings. Shares (NASDAQ:FB) are currently trading 22 percent above yesterday’s price. During the earnings call, the company announced that 14 percent of ad revenue are now coming from mobile ads. It is both a meaningful part of Facebook’s revenue and a shift investors were waiting for.

Pre-market went as high as 24.12. Yet, trading at 23.83 a share is still much below the $38 IPO level. It’s a two-month high and an optimistic indicator based on numbers — and numbers don’t lie. Facebook’s market capitalization gained around 10 billion dollars overnight.

The first quarterly earnings are very important for a public company. It all comes down to listening to investors, inspiring confidence and showing signs of growth. Facebook’s revenue is growing and following a good trend.

But with one billion users, the ability to monetize those eyeballs is the question on everyone’s lips. In particular, the company has to transform itself to become a mobile first company. Usage numbers are soaring on mobile platforms and the company is dedicated to take advantage of that.

Lock-up expirations are coming up soon as well. On November 14, 777 million shares will become available for trading. It could go either way for the stock price.