Investors “Like” Facebook (for now)

 Way to go Zuckerberg. Facebook (FB:NASDAQ) shares are jumping over 20% this morning as the company beat earnings expectations fuelled surprisingly by growth in mobile ad revenue. Furthermore Zuckerberg highlighted that 70% of mobile users visit Facebook each day, compared with only 40% of PC users and saying that mobile monetization will surpass PC monetization in coming years.

Glad we had a net long position in the stock going into earning but will be paring back our position on heels of this big move. The stock is likely to continue to rise in the short-term as momentum investors will jump on the bandwagon. We’ve already seen Citi and BAML upgrade the stock to a buy as it shows “reasonable valuation.” I’m not sure I’d go that far.

Interesting despite industry talk of declining ad rates, Facebook ad prices grew 7% year over year with total ad impressions growing 27%.

View the Q3 2012 earnings report on Facebook site.

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