Dive Brief:
- Facebook beats analyst predictions for earnings this quarter with $3.2 billion—above the $3.12 billion predicted.
- Mobile ad revenue again made up the majority of total earnings for the quarter with 66% —this is up from 61% last quarter.
- Despite healthy earnings, a prediction on the earnings call that 2015 would be a "investment" year for Facebook cause the stock to drop 10%.
Dive Insight:
As long as mobile ad revenue continues healthy growth and Facebook makes smart investments— investors shouldn't really have much to worry about. The social network seems to realize that most of its innovations should be geared to the mobile audience, which has proven to be a smart move. What may have some worried is the high dollar acquisitions, like the $16 billion purchase of WhatsApp, that haven't yet shown their worth.