In the second quarter of this year Facebook generated revenue of $ 9.3 billion, up 45 percent over the same period last year, and as profits have risen sharply, so has the share prices of the world’s largest social network, reaching record levels.
Advertisers are redirecting money from TV to web and mobile, and Facebook is one of the companies that stands to gain the most from it, though it faces fierce competition in the likes of Snapchat and YouTube on the mobile video market, which also attract millions of visitors every day.
According to estimates by eMarketer, this year Google could record $ 73.7 billion in mobile and video advertising revenue, and Facebook $36.3 billion. Together, these two companies will hold 49 percent of this market, estimates eMarketer.
As business results are better than analysts expected, Facebook’s share price rose on Wednesday in trading after closing of Wall Street by more than 4 percent, reaching a record $173.
Since the beginning of the year, the price of Facebook shares jumped by almost 44 percent.
