Facebook Soars on Strong Earnings: Tech Winners & Losers

NEW YORK (TheStreet) –– Facebook (FB) shares shot up 7.3% to $76.45 after the company reported strong second-quarter earnings.

Facebook reported yesterday it earned 42 cents a share on $2.91 billion in revenue, a 61% increase from the same quarter last year. $2.68 billion of the Menlo Park, Calif.-based company's revenue was from advertising, a 67% increase year-over-year; 62% of advertising revenue was from mobile, up 41% year-over-year. Analysts polled by Thomson Reuters forecasted 32 cents a share on $2.81 in revenue.

The social network averaged 829 million daily active users (DAUs) in June 2014, a 19% increase year-over-year, while mobile DAUs during the same period increased 39% year-over-year to 654 million. Monthly active users (MAUs) and mobile MAUs increased 14% and 31% year-over-year, respectively; both topped 1 billion. Facebook ended the quarter with $13.96 billion in cash and marketable securities.

Facebook's Hidden Jewel Proving to Be a Boon for Shareholders

Why Facebook Is Even Scarier Than You Realize

AT&T, With DirecTV, Has the Firepower for a Major Stock Move

In response to the results, several analysts upgraded their ratings of Facebook stock. Jefferies analysts maintained their “buy” rating and raised the price target to $100 from $85, citing margin expansion. Wells Fargo analysts reiterated their “outperform” rating and raised the price target to $85-$87 from $78-$80, highlighting Facebook’s strong user growth and monetization. Analysts at Credit Suisse reiterated their “outperform” rating and raised the price target to $92 from $90, noting strong mobile advertising revenue growth. Sterne Agee analysts, who also cited digital advertising, reiterated their “buy” rating and raised the price target to $85 from $80.

If you liked this article you might like

PayPal CEO Reveals How Silicon Valley Could Repair Its Broken Culture

These Powerful Corporate Executives Could Make a Run at the Presidency in 2020

Zuckerberg, Facebook Directors Settle Delaware Suit Over Voting Rights

North Korea's Nuclear Threat Pressures Wall Street at Trading Week's End

LA Times Tops 100,000 in Digital Subscriptions