Facebook (FB) Stock Falls in Extended Trading Despite Earnings Beat

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Facebook

The stock price of Facebook (NASDAQ: FB) closed $96.99 per share, up by 1.78% on Wednesday. However, the shares of the social network giant were trading lower during the extended trading despite reporting better-than-expected earnings for the second quarter.

Facebook shares were down 3.5% to $93.60 per share after-hours, around 6:16 P.M. in New York.

Facebook financial results

Facebook reported adjusted earnings of $0.50 per share for the second quarter. During the same period last year, the social network giant recorded earnings of $0.43 per share.

Its revenue for the quarter was $4.04 billion compared with its $2.9 billion revenue in the same period a year earlier.

Facebook Revenue

Wall Street analysts expected Facebook to deliver earnings of $0.47 per share on $3.99 billion in revenue based on data compiled by Thomson Reuters.

According to Facebook, its revenue from advertising was $3.8 billion, up by 43% from $2.6 billion last year.

Facebook user growth

During the quarter, the social network giant said its average daily active users (DAUs) were 968 million, up by 17% year-over-year. Its average monthly active users (MAUs) were 1.49 billion, an increase of 13% year-over-year.

Facebook’s average mobile DAUs were 844 million and its mobiles MAUs were 1.31 billion.

Facebook User Growth

In a statement, Facebook CEO Mark Zuckerberg said, “This was another strong quarter for our community. Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services.”

On the other hand, David Wehner told CNBC that the financial results of the company during “the quarter was great almost any way you look at it.”

“The real story here is just the core mobile business on Facebook, that’s what’s driving the growth—mobile’s been just a phenomenal growth driver for us. We didn’t have a mobile business three years ago, and that’s now three quarters of our ads revenue,” added Wehner.