Facebook Posts Strong Earnings As Mobile Ad Sales Surge
MENLO PARK (CBS/AP) -- Facebook reported stronger-than-expected results for its first quarter, helped by a growing number of users and higher advertising revenue.
Analysts say Facebook's popular mobile app and the new Facebook Live video feature is attracting new advertisers and has spurred existing ones to spend more.
Facebook on Wednesday reported earnings of $1.51 billion, or 52 cents per share, up from $512 million, or 18 cents per share, in the same period a year earlier. Adjusted earnings were 77 cents per share in the latest quarter, well above the 62 cents that analysts polled by FactSet were expecting.
Revenue was $5.38 billion, up from $3.54 billion. Analysts had predicted $5.26 billion.
Separately, Facebook also announced that it will create a new class of non-voting stock, known as "Class C capital stock," designated to let CEO Mark Zuckerberg keep tight reins on the company even as it issues more shares to compensate employees and investors.
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