Facebook Inc.'s shares rose to new heights in more than a year as news of its astounding revenues in mobile ads is regarded as the turning point for comeback of the social networking giant in the stock market.

Facebook shares have increased by 29.2 per cent to close the trading day on July 24 at $34.36. This is the highest Facebook Inc. has reached since its first public offering in May 2012.

After the highly anticipated IPO of the globally popular social network, Facebook shares have been on a downward slump and have yet to return to its offering price of $38 per share.

Many analysts have previously cast their doubts on Facebook's high expectations on mobile ad revenue growth as a major factor for the company's stock decline.

Facebook Inc. has since changed its online format to enable the company to follow its one billion users on tablets and smartphones as more people access the Internet using their mobile devices.

Based on Facebook's report, its net income during the second quarter of 2013 was $331 million, a big leap from last year's loss of $157 million. The company's revenue for the June quarter reached $1.81 billion. The latest quarterly revenue increased by 53 per cent compared to 2012.

Facebook's ad revenues came from mobile with 41 per cent of the company's total ad earnings. In the first quarter of 2013, mobile ad revenues represent only 30 per cent, while a year ago, Facebook's ad revenues in mobile virtually amounted to nothing.

Stifel Nicolaus analyst Jordan Rohan said the second quarter earnings report of Facebook was one of the strongest reports for any Internet-based company since the global financial crisis. Mr. Rohan believed Facebook is under-estimated and under-owned. The social networking giant has realised a "massive acceleration in revenue growth".

Sterne Agee analyst Arvind Bhatia said Facebook's revenues indicate its plans to intensify its mobile ad efforts have been successful. Facebook's market share of online advertising is estimated between 5 and 10 per cent. Mr. Bhatia said Facebook is in a strong position to increase that market share in the coming years.

The recent revenue growth of Facebook has boosted its CEO Mark Zuckerberg's fortune to $3.8 billion. The increase in Facebook Inc.'s stocks puts 29-year-old Zuckerberg ahead of Microsoft Inc. CEO Steve Balmer and Dell Inc.'s Michael Dell on Bloomberg's Billionaire's Index. The Facebook CEO and co-founder is now ranked 42nd with a net worth of $16.8 billion.

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