Facebook valued at $150bn after surge in mobile advertising revenues
The valuation also follows the unveiling of mobile news app "Paper"
Facebook shares climbed to an all-time high of $61.03 (£37) yesterday after the social network announced strong results on Wednesday, a jump of more than 60 per cent since its initial public offering in May 2012. The jump in share value means the firm is now valued at over $150 billion (£91 billion).
The company's fourth quarter results showed that profits at Facebook soared to more than 30 times what they were in 2012, rising from $53 million to $1.5 billion.
Facebook operations chief Sheryl Sandberg cashed in. She sold $300 million worth of shares but retains 12.3 million shares worth close to $700m. Meanwhile, chief executive Mark Zuckerberg gained $3.2 billion on paper from the rise in Facebook’s share price.
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The positive results came off the back of booming mobile advertising revenues.
Advertising revenue across all Facebook platforms rose 76 percent but more than half of that came from mobile devices compared to just 23 per cent a year ago. In total, the site made $1 billion from mobile.
The rise in share price also follows the announcement of a new Facebook mobile news app called Paper, which will feature news from people's Facebook friends alongside that of established media outlets.
Earlier this month Bank of America Merill Lynch (BAML) pointed out that Facebook is already worth £1.21 billion more than the country of Malaysia.
It's worth noting that other US tech giants like Google and Apple are worth several times more than Facebook, with valuations of £231 billion and £293 billion respectively.