>> Facebook wowing Wall Street. The leading social network announcing Wednesday monthly active users topped 2 billion in the April to June period, a gain of nearly 20% from a year ago. And user growth at Instagram and WhatsApp, not shabby at all. All those eyeballs translating to big bucks for Facebook, especially when it comes to money from video ads, says Reuters Silicon Valley correspondent David Ingram.
>> The news feed generates far and away the most revenue. And within the news feed, advertisers are using video more and more in their ads. So they're encouraging advertisers, no matter who they are, to put videos in their ads to try to make their ads more engaging. And they're experimenting with different types of ads to see what works best.
>> Investors responding favorably to a huge beat on profits, the stock adding to the 44% gain it's already seen this year.>> One of the reasons why the Facebook stock is up so much in 2017 is that investors see it as, perhaps, maybe the safest among the really big tech companies.
Apple has a lot more competition for phones and Microsoft has competition for its services. Facebook does too, but Facebook is seen as having this amazing growth potential in advertising dollars online.>> But the push towards video in both ads and content is coming at a price. Mobile ads, where all of the growth is coming from, pays less than old school desktops.
And Facebook is preparing to roll out various initiatives in coming weeks, including scripted videos and TV shows which it has to pay for. Both are likely to put future pressure on profits that giddy investors may not be prepared to like.