NEW YORK (TheStreet) -- With shares of Facebook (FB) up over 25% on Thursday following its second quarter top- and bottom-line beat, what did analysts miss? Breaking it down with TheStreet's Jim Cramer and Ross Kenneth Urken is "Mad Money" Research Director Nicole Urken.
What mainly took all of the older generation analysts and fund managers by surprise were the strong ad revenues, which came in at $1.6 billion for the quarter. Of that, over $650 million came from mobile users, much better than what many had thought.
Facebook has done an incredible job at integrating its ad platform into users' news feeds and has made it very noninvasive, according to Nicole Urken.
She added that CEO Mark Zuckerberg sounded very passionate on the conference call, talking about how he wanted to improve companies' forms of advertising, and not just his company's bottom line.The ad platform is really diversified, and tailored toward direct selling, consumer products and local businesses, Cramer added. Graphic search is something that's relatively new for Facebook and will likely take a while to get going. On the other hand, the company's recent video integration into its Instagram platform has picked up extremely quickly. "He [Zuckerberg] is balancing longer-term projects with shorter-term uptakes," Nicole added. The big thing about Facebook is that people both need and want it. Businesses need it to reach consumers effectively as the medium's capabilities keep drawing individual users in, Ross said. He concluded that company's new ad platform has been integrated so seamlessly that it doesn't become a burden when using Facebook or scrolling through its news feed. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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