>> Facebook blowing by expectations across the board on Wednesday thanks to its strong push into mobile and video. Fourth quarter ad revenues jumping again to over $8.6 billion from 5.6 billion in the same period last year. Investors cheering the results, and the stock initially jumping about 3% in after hour trading, to hit a record high, but falling back slightly later.
One surprise, says Reuters Global Tech Editor Jonathan Weber, is how little the US presidential election had on the bottom line.>> It wasn't one of their top 10 verticals even this fall. They noted that their big events all around the world all the time and the business is so big they're now up to 1.86 billion users around the world, that any given event doesn't really move the needle.
>> The strong results a relief after Facebook in November had warned that ad growth would likely slow due to the limits of the total number of ads Facebook can show. But all this good news perhaps not so great for it's competitor, Snap Inc., which is expected to publish its IPO documents later this week.
>> Facebook, especially through Instagram and through the Facebook Messenger product, they've been furiously cloning all the Snapchat features. So, they watch what Snapchat does that works and then they do it. They've got this ginormous user base, so they have huge levers to pull, certainly if you're considering buying into Snapchat, this is something you'd wanna keep a close eye on.
>> The strong earnings coming on the same day that the company suffered a legal setback. A Texas jury ordering Facebook and its virtual reality unit, Oculus, to pay half a billion dollars to a video game publisher, ZeniMax. ZeniMax sued Facebook alleging Oculus stall is virtual reality technology. Facebook saying it will appeal the verdict.