The week that just went by saw some stocks reverse losses of previous weeks and months and gain on solid results.
One of them was Facebook Inc (NASDAQ:FB), which surprised everyone with its better-than-expected results. But biggest and most pleasant surprise for its investors and analyst community was the rise in revenues from mobile ads by the company.
While Facebook did post a loss of $59 million in the third quarter, its advertising business posted a 36 percent rise in revenues to $1.09 billion.
Better still for the social network, 14 percent of ad revenues came from mobile use, an area where analysts have expressed concerns about making money.
On Tuesday, Facebook shares recorded their biggest single-day gain since it went public in May, while a day later it went as high as $24 a share. The stock closed at $21.94 this week, up 14 percent for the whole week. Since Oct. 10 its shares had been floundering below $20 a share.
Game developer Zynga Inc(NASDAQ:ZNGA) was another stock that saw it making gains after third quarter results proved to be better than analyst estimates.
It also unveiled plans to buy back stock and move into real-money gambling.
Zynga's shares rose 12 percent to $2.39 at the close, recording the biggest gain since February. The stock had depreciated by more than three-fourths from debut price last December.
While its sales rose 3.2 percent to $316.6 million, the company said that it would repurchase stock worth $200 million.
Yelp Inc(NYSE:YELP) was the third social media stock that went on to record hefty gains. The site, that lets users review businesses and products, saw its share price 7.4 percent to $25.77 after its reported quarterly results that exceeded analyst forecasts.
Yelp said third-quarter sales will be about $36.4 million, exceeding its prior forecast and more than analysts’ average $35.7 million estimate. The company’s shares were further boosted by its acquisition of Qype GmbH, Europe’s biggest local review website, for about $50 million to expand beyond its U.S. base.
Its shares have appreciated about 72 percent since its IPO in March.