Stocks of Facebook Inc. jumped in postmarket trading on Monday after it reported mixed third-quarter 2021 earnings.
Accordingly, the social networking giant posted gains after-hours as it surged 1.79% or 5.88 points to $334.57 per share.
In addition, it followed its Tuesday hike of 1.26% or 4.08 points to $328.69 per share.
Remarkably, Facebook is on track to reverse its sharp decline of 5.05% to $324.61 per share last Friday.
In the latest quarterly report, its earnings per share improved from 18.80% to $3.22 year-over-year.
Additionally, it also came in higher than the analyst estimate of $3.19.
However, its revenue weakened to $29.01 billion from the expected $29.57 billion.
Then, its daily active users matched the projected $1.93 billion.
Meanwhile, monthly users edged down to $2.91 billion from $2.93 billion.
Consequently, the average revenue per user posted at $10.00, slightly lower than the forecasted $10.15.
Meanwhile, the company projected its fourth-quarter revenue to surge from $31.50 billion to $34.00 billion.
In line with this, market participants expected a jump to $34.80 billion.
Moreover, Facebook mentioned it would focus more on its full-screen video Reels feature, posing significant changes in the platform.
This move is in line with the effort of the business to be more appealing to users between the ages of 18 and 29.
Furthermore, CEO Mark Zuckerberg defended how its services affected its users amid an onslaught of reports supported by the documents leaked by a former employee.
Accordingly, the records showed that Facebook was fully aware of the harms that its app and services could cause.
However, it doesn’t rectify the issues and address them. Subsequently, more documents should be released soon.
Wall Street Close Higher as Facebook Stocks Rise
On Monday, US stocks closed higher as upbeat earnings lifted the market outlook.
Accordingly, the Dow Jones Industrial Average amplified 0.18% or 64.13 points to $35,741.15 per share.
Correspondingly, the benchmark Nasdaq Composite rose 0.90% or 136.51 points to $15,226.71 per share.
Similarly, the S&P 500 index strengthened 0.47% or 21.58 points to $4,566.48 per share.
Subsequently, rival social media companies of Facebook also edged up in the after-hours.
For instance, Microblogging firm Twitter enhanced 1.43% or 0.89 points to $63.00 per share.
Also, Alphabet Class A, parent of Google, boosted 1.43% or 0.89 points to $63.00 per share.
At the same time, Snap enriched 0.02% or 0.01 points to $54.51 per share.
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