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Facebook shares rally as quarterly results easily surpass Street View

The shares of Facebook Inc. rose during the extended session Thursday after the social media giant jumped past Wall Street’s second-quarter estimates.

Facebook FB,
+ 0.51%
shares rose more than 7% in after hours trading on Thursday, after a 0.5% rise to close the session at $ 234.50.

The company reported net income of $ 5.18 billion, or $ 1.80 per share, compared to a net profit of $ 2.62 billion, or 91 cents per share, in the year-ago quarter.

Revenue improved 11% to $ 18.69 billion, from $ 16.89 billion a year ago.

Analysts surveyed by FactSet had expected adjusted earnings of $ 1.39 per share on revenues of $ 17.34 billion.

Monthly active users, a key indicator of Facebook’s growth and advertising appeal, improved to 2.7 billion. FactSet analysts had estimated $ 2.63 billion, up 8.8% from the $ 2.41 billion reported a year ago.

Read more: Facebook has weathered many storms, but the latest come to the core

Facebook Chief Executive Mark Zuckerberg was one of four tech CEOs – Apple Inc.’s AAPL,
+ 1.21%
Tim Cook, AMZN from Amazon.com Inc.,
+ 0.60%
Jeff Bezos and Sundar Pichai of Google parent Alphabet Inc. Oogl,
+ 0.97%
+ 0.62%
were the others – to testify on Wednesday before an antitrust subcommittee of the House. (Facebook was originally scheduled to report Q2 results on Wednesday, but pushed them back to Thursday.)

The controversial company is gripped by a global ad boycott of more than 1,000 companies that object to hate speech, violent content and misinformation on Facebook’s digital platforms. The Who’s Who of major brands who added their name to the # StopHateForProfit campaign or otherwise got their ads from Coca-Cola Inc. KO,
and Starbucks Corp. SBUX,
to Ford Motor Co. F,
and Microsoft Corp. MSFT,

The full extent of the boycott’s financial loss will not be known until Facebook reports its third-quarter results, but there is an optimistic beam: Facebook’s top 100 advertisers make up only 20% of revenue. Three-quarters of revenues come from small and medium-sized businesses, although it remains to be seen whether those companies cut advertising spending while gripped by the worsening pandemic.

See also: These are the big brands that have taken ads from Facebook

Facebook shares are up 14% this year. The wider S&P 500 index SPX,
is up 0.6% in 2020.