Facebook’s Success in Mobile Advertising Could Spark Industry Turnaround
Facebook's mobile ad revenue caught fire and skyrocketed 75 percent in just three months. The enormous jump in ad revenue has left doubters with little to say, and more than a little bit of egg on their heads. It might also serve as a blueprint for other companies to follow.
"You're going to see a lot of companies transitioning and trying to emulate this model because it's working so well. That's why last night was a true watershed moment," Ben Schachter, an analyst at Macquarie Research, told Reuters.
Following Facebook's second-quarter earnings report, the company's share price jumped nearly 30 percent yesterday to $34.36. Analysts and investors are starting to view Facebook in a different light and seeing potential that wasn't there up to this point. Lest we get ahead of ourselves, however, Facebook still has a few more dollars-per-share to go just to reach its $38 IPO price.