Updated to add comments from Jim Cramer.
Facebook (FB) is an absolute advertising monster, with 1.59 billion people using it every month. A closer look, however, shows how enormous it really is.
The Menlo Park, Calif.-based technology giant posted fourth quarter results on Wednesday that trounced estimates, with Deutsche Bank's Ross Sandler calling it "the greatest we've seen since mid-2013." Adjusted earnings came in at 79 cents a share on $5.84 billion in revenue, up 52% year over year. Analysts surveyed by Thomson Reuters were expecting the company to earn 68 cents on $5.37 billion in sales.
In early trading on Thursday, Facebook shares were up 13%.
As of the end of 2015, 1.59 billion people used the service every month, including 1.44 billion on mobile devices, an increase of 21% year over year, suggesting that user growth isn't slowing any time soon. Perhaps more importantly, Facebook now has 934 million mobile daily active users, an increase of 40 million from last quarter and 25% more than the previous year.
It's clear that advertisers are taking to Facebook in spades, with advertising revenue rising 57% year-over-year to $5.64 billion, 80% of that coming from mobile.
Put another way, $FB generated over $2 million in mobile advertising revenue EVERY HOUR— Chris Ciaccia (@Chris_Ciaccia) January 27, 2016
Facebook-owned Instagram, which Facebook bought in 2012, is also seeing strong traction. On the company's conference call, Facebook COO Sheryl Sandberg said 98 of the top 100 advertisers on Facebook also advertised on Instagram, showcasing the power of the visual heavy platform.
Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio. "What you're seeing with Facebook is a dramatic 'R'-that's accelerated revenue growth," says Cramer in the above video. "It is obviously not a macro story, it is a story about continued user growth."
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Video is increasingly becoming an important tool for Facebook in the fight for advertising dollars against the likes of Alphabet-owned (GOOGL) (GOOG) YouTube. CEO Mark Zuckerberg was asked on the call whether Facebook would launch a stand-alone video app, but was noncommittal about it, only saying that there were "additional opportunities" for Facebook and standalone apps.
Zuckerberg highlighted the fact that people watch more than 100 million hours of video on Facebook every day.
Here's an infographic that shows just how big Facebook and everything that it owns, including Instagram, WhatsApp and Messenger, truly is: