Facebook
People are silhouetted as they pose with mobile devices in front of a screen projected with a Facebook logo, in this picture illustration taken in Zenica October 29, 2014. Facebook Inc warned on Tuesday of a dramatic increase in spending in 2015 and projected a slowdown in revenue growth this quarter, slicing a tenth off its market value. Facebook shares fell 7.7 percent in premarket trading the day after the social network announced an increase in spending in 2015 and projected a slowdown in revenue growth this quarter. Reuters/Dado Ruvic

As Facebook posted a strong 40.5 percent jump in quarterly revenue on Wednesday, it was quick to surpass the record of General Electric.

Facebook’s new advertising services and the mobile app have triggered such huge jump in shares, making it one of the largest in the world. On Wednesday, the stock rose about 5 percent, recording an all-time high of US$109.34 (AU$153.10) in extended trading.

In addition, the world’s largest social media network beat Wall Street’s estimates despite declaring increasing costs of apps such as Facebook Messenger and Whatsapp. Furthermore on Thursday, the stock increased 4.6 percent to US$108.76 (AU$ 152.29). This escalation in the stock has resulted in the generation of capital worth of US$307 billion (AU$429.88 billion), which has taken Facebook higher than Johnson & Johnson and General Electric Co. in terms of market capitalisation (market value remained at AU$419.52 billion).

Back in October, GE posted earnings of US$2.51 billion (AU$ 3.51 billion) and revenue of US$31.68 billion (AU$ 44.36 billion). As compared to Facebook’s 42 percent, GE’s shares were up by 17 percent (in terms of returns). For now, investors are betting over the fact that in the long run, Facebook would gain more money by connecting and through advertising, reported CNBC.

The company also has made a marginal profit from Instagram, its mobile photo-sharing application, for the first time as recently it has boosted video ads on it. Given the average revenue earned per person, Facebook recorded a 24 percent jump in the Q3 earnings.

Facebook joined Amazon in the bandwagon after the online retailer posted earnings of more than US$300 billion (AU$ 420.08 billion) in value earlier this week. Hewlett- Packard, IBM and Cisco sowed the seeds of technological revolution; Facebook came to the scenario only a few years ago.

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