Raising Facebook’s Fair Value
We’re boosting our view of Facebook’s growth and profitability after the firm reported excellent second-quarter results.
Facebook’s second-quarter total revenue grew 45% year over year to $9.3 billion. Ad dollars keep coming to Facebook as the firm reported ad revenue of $9.2 billion during the quarter, up 47% over the prior year. Demand for the firm’s ad loads remained strong as Facebook is expected to reduce its inventory during the second half of 2017. Robust demand along with lower upcoming supply pushed Facebook’s overall average revenue per user, or ARPU, up 24% year over year. The firm ended the quarter with more than 2 billion MAUs, representing a 17% year-over-year user growth.
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