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04:58 BST, July 26, 2013Mark Zuckerberg is tickled pink at the moment as his net worth jumped up $3.7 billion dollars after Facebook’s second quarter earnings report.
Facebook share prices jumped 15% from Wednesday to Thursday. Facebook shares closed on Thursday at $34.36, which represents a huge increase since last years all-time low of $17.73 in September.
Zuckerberg said:
“We had a lot of progress in the last three months on growing our community engagement, releasing a successful major product and generating strong financial results.”
The earnings per share of 19 cents on revenue were $1.81 billion – much higher than what analysts expected of earnings per share of 14 cents on revenue of $1.62 billion.
Forbes magazine now estimates that “as of Thursday, Zuckerberg is worth approximately $16.1 billion.”
How is Facebook doing it?
Rick Summer of Morningstar said that “They’re lucky. They have fantastic assets that translate well to a mobile experience.”
It seems that Facebook has finally managed to make money on mobile platforms as 41% of their advertising income now comes from mobile devices.
Summer said that the key to Facebook’s mobile success is because their ads are cleverly placed between entries on users’ newsfeeds, which gets the users attention without bothering them.
In addition, the company provides advertisers the able to track the effectiveness of all their ads, which helps bring in and generate more ads.
Facebook is proving to be an example of how it is possible to generate good ad income via mobile devices.