Global business news twenty four hours a day at Bloomberg dot com, the radio, plus mobile acts and on your radio. This is a Bloomberg Business flag from Bloomberg World Handquarters, Signed Charlie Pellett. Facebook reporting second quarter revenue that beat handless projections, lifted by sales of video and Instagram ads. We did see shares of Facebook up by seven percent.
Google reports earnings tomorrow. After the bell. Moments ago, we heard from amngine its second quarter profit beat analysts estimates, driven by higher than expected drug sales. The company also raised its guidance for the year. Most stocks fell earnings on the price of crude, largely setting the tone for individual shares. As investors assess the Federal Reserve's latest policy decision ten year up fifteen thirty seconds, yield there one point five percent. Group on shares moving higher now by
eighteen percent after boosting its year view. Right now we have got its yearly reven new view. I should say SMP down two points to sixty six and drop there of point one percent down, Industrials down a point little change, as stack up twenty nine a gain of six tenths of one percent, and gold up again. There of one and a half percent. I'm Charlie Pellock. That's a Bloomberg business flash. This is taking stock with Gableen Hays and
pim Box on Bloomberg Radio. Shares of Facebook are moving higher by more than seven and a half percent and after hours trading. As a result of their second quarter earnings release, the company reported that second quarter sales climbed fifty nine percent to six point four billion dollars. That beat analysts projections. Also, to take a look at how many monthly average users they added last quarter, sixty million monthly average users were added. That's twenty times what Twitter added.
Here to tell us more about Facebook is to Tendra Warrel, global Internet and consumer Electronics analysts for Bloomberg Intelligence, providing unique and real time research in a variety of industries, markets, and all the government factors that affect businesses. Our terminal customers can access this function at b I Go and there Tender joins us from our Bloomberg nine six studio in San Francisco. Jotendra tell us about Facebook and the results today a PM so an absolute blowout quota. The
street was expecting forty nine percent growth and revenues. You know, they ended up coming at fift Mobile is basically behind, uh the entire growth story here, and obviously video acceloration continues and a new revenue stream. Instagram is probably adding more than what what we thought it did. So all
in all, great quota. And most importantly, if you look at the engagement numbers, they are accelerating, so people are more engaged on Facebook or any competition fears that people had may alleviate, like likes of Snapchat cutting into Facebook's time or people getting bored of Facebook and all those things. Uh, these numbers are not showing any of that fatigues. So all in all pointing to continued growth and market share um in in mobile advertising. So tender to we do
we get any breakdown geographically US versus Overseas, etcetera. Yeah, we do. And the interesting thing is, like US growth was very strong about six y o y over here and and really it's a broad based sort of growth that we're seeing across you know, different regions that Facebook operates in. But most importantly, like you see an acceleration in our pool, like the average revenue they are making
poor user that's going up. Probably they are up selling more services more targeted as to the same users loosing more dollars out of it. Uh. So you see US obviously leads over there with the r pool numbers, but the US growth I think it's really broad based at this point. I wonder if you could comment on the goodwill that's such a blowout Quarter creates for Facebook to allow them to invest in things such as Internet, drones and virtual reality. Reported from our Sarah Fryer at Bloomberg. Yeah,
it continues to build that good will. Actually, so Facebook has been up pulling this balancing act beautifully in terms of like supporting these heavy growth expectations with their core business Instagram and video while building new revenue streams like rtual reality and let's not forget messaging. You know their messaging services. What's happened Messenger have more than two billion people on on that service and they don't make money
out of it yet. So the idea here is, let the core uh support of growth that Wall Street expects until the new revenue streams come to write it further, So, can anybody's Facebook now, just in a world a universe of its own, can anybody quote unquote compete with Facebook? Well, there's Google on the other end of the equation, but the Google and Facebook basically account for fifty of mobile
advertising UM industry revenues. And really the strength that Facebook has that nobody can really compete with them is targeting. You know, they can target not just like what interest do you have, but contextually when you are more likely to do it better than most other incumbents. So that translates to better r o I for advertisers, and you know, once they see better r o I, they come back
with more to sender. What does this tell us about not only the performance of Facebook, but comparison with Twitter basically tells us that Twitter has a company specific issue and brands are less likely to sort of like spick with them. I mean, they're seeing brand weakness over there. Uh, They're they're in. They're basically they're seeing brand weakness in like advertising revenues that they're seeing and the growth rate expectation for three Q is like five. I mean that's
Yeahhoo's mobile growth rate was a three last quarter. So obviously the company's specific issue and there's no clear signal yet that the new Life strategy can turn around this trend. But the tender seems to me too. These are different business models. They sell people different things, right, comparing Google's mobile to facebooks mobiles mobile. Because Facebook, there's only one site that does this for you, connect to you with
friends and business and everybody else. Twitter's all about Twitter character messages out. Uh. That's why I ask cannybody compete with them because they may have equal mobile ads with Google. Google may may meet them there, but in terms of what they do, who else does this to this extent? Right? So what advotisers only care about what is the cost of acquiring a user and what is the return or investment I get for paying that cost, and whoever shows
better on those metrics, they go with them. Right. So if you look at Twitter's market share, it's like loose single digits verresus. We talked about Google and Facebook taking like of the market so they have the volume, they have the targeting. But you're right about like, Um, you know these guys serving sort of different uh forms of advertising, especially Google and Facebook because you know, search is equally important. So Google and Facebook have pretty much become the staple
of digital advertising for marketeers. Septender Roll, thank you so very much for joining us from Bloomberg Intelligence, where his global Internet and consumer Electronics analysts, doing a terrific job today of just laying out these amazing Facebook numbers. I want to think Marx Kosti, who's our technical director today, and of course Sam laying U putting together to a terrific show today. As our producer, I'm Kathleen Hayes along
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