NEW YORK CITY: Facebook shares jumped to record highs on Thursday (Friday in Manila), buoyed by news of stronger-than-expected profits and sizzling gains in mobile advertising revenue.
The gains came as Facebook introduced a new mobile app aimed at becoming a social newspaper of sorts for the members of the world’s biggest social network.
The stock ended up 14.1 percent at an all-time closing high of $61.11, a day after Facebook reported that profit in the fourth quarter jumped eightfold from a year earlier to $523 million, boosting its net income for the year to $1.5 billion.
“Facebook’s ascendancy and execution in 2013 has been near-flawless,” said Deutsche Bank analyst Ross Sandler in a note to clients.
Mark Mahaney at RBC Capital Markets said he was “more positive” on Facebook after the strong quarterly report.
“The most important Internet trend by far is Mobile, and Facebook has become a Mobile company,” he wrote in a research note.
Scott Devitt at Morgan Stanley said that Facebook’s results “show no signs of slowing mobile momentum” and noted that the company has managed to skillfully get more ad revenues.
The figures suggest that “Facebook improves its ability to make ads more relevant and less intrusive to users,” he said in a research note.
In another sign of its focus on mobile, Facebook unveiled its new app called “Paper,” an online newspaper for viewing and sharing articles and other content from a smartphone.
“Paper makes storytelling more beautiful with an immersive design and fullscreen, distraction-free layouts,” Facebook said in a blog post announcing the new service.
“We’ve also made it easier to craft and share beautiful stories of your own,” it added.
The app, the first product from Facebook Creative Labs, will be available on February 3 for iPhone users.
Paper presents stories and themed sections to allow people to follow topics ranging from news headlines to food to sports and science.
It has a tiled design that allows users to customize the display alongside a personal Facebook feed.
“Each section includes a rich mix of content from emerging voices and well-known publications,” the blog post said.
The partners in Paper were not named, but a video released by Facebook showed a user scrolling articles and content from The New York Times, Time magazine, USA Today, The Huffington Post and others.
“Storytelling and sharing have been reimagined in Paper to show stories at their best,” Facebook said.
The app will allow for full-screen viewing of videos and will “make it easy to spot articles from trusted publishers and decide what to read or watch,” it added.