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Facebook shares soar 22% in early trading

October 24, 2012|By Andrew Tangel
  • Nasdaq headquarters in New York
Nasdaq headquarters in New York (Spencer Platt / Getty Images )

Facebook lost $59 million in the third quarter, but the newly publicly traded social networking site saw its shares soar on Wall Street early Wednesday.

Facebook shares gained $4.35, or 22%, to $23.85 in early trading, after the company reported gains from mobile advertising.

Major U.S. stock indexes, meanwhile, edged higher shortly after the opening bell. The Dow Jones industrial average rose 16 points, or 0.1%, to 13,118.

The broader Standard & Poor's 500 index was up four points, or 0.3%, to 1,417. The Nasdaq was up nine points, or 0.3%, to 3,000.

The ability to pull in revenue from ads on smartphones and tablet computers has been a weakness for Facebook, as a growing number of users access the site from those devices.

Since its May 18 initial public offering, Facebook's stock has performed poorly. Shares went public at $38 each, then quickly plummeted after the IPO, which was marred by controversies over disclosures and technical glitches on the Nasdaq.

Facebook reported its third-quarter earnings after the stock market closed on Tuesday. The company said it posted $153 million in mobile advertising revenue, or 14% of all ad revenue, up from an estimated $45 million in the previous quarter.

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