The Facebook stock price has been under pressure since reporting Q2 2015 earnings Wednesday after the close. However, analysts remain bullish.
Some concerns surfaced that Facebook Inc. (Nasdaq: FB), whose market value has surged $50 billion in the last two months, won't be able to continue to grow as such a rapid pace..
Here's a brief look at the recent earnings report…
Facebook Stock Price Falls After Earnings
The Menlo Park, Calif.-based company earned $0.50 per share on revenue of $4.04 billion. That comfortably topped estimates of $0.47 per share on revenue of $3.99 billion. It was also handily better than EPS of $0.42 on revenue of $2.91 billion earned last year.
Monthly active users (MAUs), a key metric for the social networking leader, rose by 13% year over year (YOY) to 1.49 billion. To put that in perspective, that's more than the population of China, which is 1.39 billion.
FB also reported it had 1.31 billion mobile MAUs. That was up 23% YOY. Market researcher eMarketer says that together, Facebook and Google Inc. (Nasdaq: GOOG, GOOGL) will capture more than half of the $69 billion global mobile-advertising market this year. While Google leads with 35%, Facebook is growing at a quicker clip.
Users now spend an average of more than 46 minutes a day on Facebook and its other properties, including Facebook Messenger and photo-sharing app Instagram. Facebook users now conduct some 1.5 billion searches a day, and FB has indexed more than 2 trillion posts.
That has Facebook looking more and more like Internet search behemoth Google.
FB officials also provided additional details regarding its mission of providing Internet access to the 10% of the Earth's population that live far from cell towers and land lines.
Facebook is working on drones the size of a Boeing 737 launched by helium balloons. Each 1,000-pound drone, powered by the sun, will fly in slow circles more than 11 miles above the Earth. They'll provide broadband-level Internet for individuals in a 50-mile radius below.
That kind of innovation, vision, and growth outlook are reasons why at least eight Wall Street firms hiked their Facebook stock price target Thursday following Q2 results.