NEW YORK (TheStreet) -- Small business is a primary driver of Facebook's (FB) - Get Report video growth with 2.5 million businesses posting a video in the last month, the social media giant's Small Business VP Dan Levy explained on CNBC's "Squawk Box" Thursday.
"If you think about how hard it is for a business to create a video ad, even five years ago it meant getting television cameras and a production crew. Today business owners can take the smart phone out of their pocket. They can film something in just a few minutes," Levy said.
Business advertisers have also been taking advantage of Nintendo's (NTDOY) hit augmented reality game "Pokemon Go" by promoting stops in their videos, according to CNBC's Julia Boorstin.
"So we'll have to see if that whole "Pokemon Go" phenomenon lifts results next quarter," Boorstin commented.
After yesterday's closing bell, Facebook reported 2016 second quarter earnings of 97 cents per share on revenue of $6.44 billion, beating analysts' estimates of 82 cents a share on $6.02 billion in revenue.
In addition, the amount of small businesses on Facebook grew to 60 million from 10 million in three months.
"Video is at the heart of all our apps and services," Facebook CEO Mark Zuckerberg stated after the company's earnings release.
Shares of Facebook are rising by 2.76% to $126.75 early this morning.
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Separately, TheStreet Ratings rated Facebook as a "buy" with a score of B+.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: FB
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.