Why Facebook (FB) Stock Is Up in After-Hours Trading Today

NEW YORK (TheStreet) -- Facebook (FB) was gaining 0.3% to $71.47 after-hours Wednesday after beating analysts' estimates for earnings and revenue in the second quarter.

The social networker reported earnings of 42 cents a share for the second quarter, beating the Capital IQ Consensus Estimate of 32 cents a share by 10 cents. Revenue grew 60.8% year-over-year to $2.91 billion for the quarter, beating analysts' estimates of $2.8 billion.

Mobile advertising revenue represented about 62% of advertising revenue in the quarter, up from about 41% in the year-ago quarter.

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TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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