Editor's Note: This article was originally published at 7:15 a.m. EDT on Real Money on July 25. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.
NEW YORK (Real Money) -- You want revenue growth? Is that what you want? OK, we will give you revenue growth and we will throw in margin expansion and huge bottom line leverage, too. OK? There. You happy?
That's how I felt after reading both the Qualcomm (QCOM) and the Facebook (FB) conference calls. They were lessons in how to deliver much-better-than-xpected EVERYTHING, meaning every single metric and, given the setups in their various industries, the timing couldn't have been more perfect.
After disappointing revenue growth in one-time laggard Yahoo! (YHOO) and industry darling Google (GOOG), everyone was pretty set up to hear the worst from Facebook. The shorting in this name, which you could see every day starting right at the opening bell, was intense. The put buying? It was all over the place. And why not? After all, the last quarter was a darned good one, the stock spiked in after hours and then proceeded to give up all of its gains and then some and then some more.So, you had to figure, "Hmm ... risk-free short, industry hurting, no dividend, (hence free fire zone with maximum effect by all the howitzers the Street has to offer)." Totally wrong. This company, in one quarter, has gone from being the company that couldn't shoot straight in any category, that was summarily getting its butt kicked by Twitter and that couldn't even produce a tailored smartphone interface, to being the only company that has managed to master mobile in a way that could produce years and years of blowout earnings. That's how you get 54% revenue growth. That's how you get ad revenue up 61%. That's how you get average price per ad up 13%, a number Google would kill for. Of course it wasn't a single quarter conversion. But this incredible transformation did happen in only about a year and that's an amazing testament to the team that runs this joint. The total engagement of Mark Zuckerberg and the operations capabilities shown by Sheryl Sandberg, who wasn't out selling books and stocks this quarter as much as she was selling ads, just blew me away. They perfected a method of delivering ads to their 100 million nightly users that could end up being disruptive to the entire advertising industry. Put simply, after this quarter every major advertiser should be calling Facebook to develop a campaign like the ones mentioned for Lysol and Airwick that had huge results, two- and five-times the returns on investment. That's amazing.
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