Published: Fri, February 03, 2017
Economy | By Melissa Porter

Facebook Inc (FB) Stock Soars To Record High On Q4 Earnings Beat

Daily active users averaged 1.23 billion for December 2016, a gain of 18 per cent from the prior year, while mobile daily active users increased by 23 per cent to 1.15 billion for that month. Mark Zuckerberg's social media company reported revenue of $8.81 billion for 2016 beating analysts projected $8.52 billion in revenue.

Mobile now makes up 84 percent of its ad revenue - the same as last quarter - signalling that Facebook has successfully shifted to mobile.

As far as Facebook user traffic looks, the platform sees over 1.23 billion daily with 1.15 billion using the mobile app. And 1.74 billion of Facebook's 1.86 billion monthly active users were on mobile devices for at least some of their visits. Facebook shares were up 2.2% in early after-hours trading Wednesday. Now just a few short years later, Facebook is on the cusp of doubling the number of people who connect with others through the world's largest social playground, the company revealed in an earnings report. Eventually, these efforts could pay off in terms of user growth and average revenue per user growth in the developing world.

"Our business did well in 2016, but we have a lot of work ahead to help bring people together", he said. Facebook also expanded video advertising, drawing ad dollars that might otherwise have gone to television commercials.

He was asked again and again about Facebook's video strategy.

Facebook has been adding features to attract more users and retain those already on the network, with a feature to tackle fake news posts being the most recent addition, after the criticism that followed the U.S. election on November 8. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California. Facebook's operating profit jumped by a whopping 78% coming in at $4.57 billion, while for the full year, operating profits doubled. While in 2015, Facebook bought in $17.9 billion, the company closed out 2016 with $27.6 billion. Analysts had expected $US8.51 billion in revenue.

Overall, Instagram has 600 million monthly users, at least according to some numbers announced back in December, 100 million of those joining the service in the six months before.

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