Strong Fourth Quarter Results Posted by Facebook

Facebook is expanding at an incredible pace propelling it to better challenge Google as the most powerful Internet company.

The fourth quarter Facebook report last Wednesday provided the most recent gauge of the impressive strides made by the social media company.

It was the first time Facebook’s revenue for a quarter passed the threshold of $5 billion, which was more than fading star of the Internet Yahoo now is generating for a complete year.

Earnings at Facebook more than doubled to end the quarter at $1.56 billion, even though the company based in Menlo Park, California invests heavily in artificial intelligence, virtual reality, access to Internet in remote locations and an ad network for mobile devices that offers services beside its own.

The quarterly performance lifted the stock of Facebook by over 12% in after hours trading following the release of the report.

Although Google is still three times larger by its revenue, Facebook is closing the gap by selling more mobile ads on its social networking app.

It is also just beginning to mine its revenue from its Instagram service and its rapidly growing video library.

The debut this spring of Oculus Rift the headset that is part of the technology of virtual reality that Facebook acquired for $2 billion almost two years ago, could open yet another lucrative stream of income for the company.

Google has started to hire more specialists in virtual reality, a sign it is attempting to catch Facebook in a field that remains nascent that could transform the world of computing.

Facebook’s foundation remains social networking. The service acquired another 46 million regular users during the last three months of 2015 to expand its audience globally to more than 1.59 billion users.

Google is now part of Alphabet Inc and continues to thrive as well. The company has over 1 billion users on the search engine and YouTube its video site.

That makes it quite unlikely that Facebook is going to topple Google as the Internet powerhouse anytime in the near future.

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