Facebook and Twitter announce Second Quarter Results

Major technology companies have been announcing their second quarter results. Facebook and Twitter have also declared their results. But there is a difference, as Facebook has been trading up almost 30% in the past year. On the other hand, Twitter has lost over 7% from a year ago and more than 33% from this year's April high.

Twitter's not so great performance could be due to factors like it is going through a transition phase, it has no permanent CEO and its user bar is also not increasing. However, such is not the case with Facebook, which has been showing great growth and its user base has been increasing exponentially.

Facebook seems to be adopting right strategies at the right time. It is focusing on mobile advertising and video, which as per experts are the main drivers of revenue in the future. Facebook has become the eighth largest company in America in terms of market capitalization.

Its second quarter earnings have crossed analysts estimate with $4.04 billion in revenue and $0.50 earnings per share (EPS). Analysts had predicted $3.99 billion in revenue with 47 cents EPS.

Twitter has reported better-than-expected earnings, but it also warned that user growth has been suffering. "The real story here is just the core mobile business on Facebook, that's what's driving the growth-mobile's been just a phenomenal growth driver for us", said David M. Wehner, CFO, Facebook.