Facebook shares are up 18% in pre-market trading after the company released higher than expected earnings on Wednesday.
Earnings per share were set at $0.31 on an estimated price of $0.277, while revenue increased to $2.59 billion ($2.35 billion expected).
Facebook managed to beat expectations thanks to mobile ad revenues which increased at a faster rate than expected.
The shift to mobile ads led Business Insider’s Jim Edwards to proclaim:
“Facebook is basically a mobile company right now — a majority of its revenues come from mobile, not from the desktop product. And the vast majority of its active users are mobile users.”
With an increase in earnings and new mobile products on the horizon, Facebook shares are likely to remain solid over the short-term.