Facebook Bounces Back After Earnings Beat Despite Higher Expenses

Shares of Facebook rose after the social media network reported quarterly results that beat analyst expectations following the prior session's close. Facebook reported fourth-quarter earnings of $0.54 a share, up from $0.31 a share a year ago. Revenue rose to $3.85 billion from $2.59 billion last year. Analysts were expecting earnings of $0.49 a share on revenue of $3.77 billion, according to Thomson Reuters. In terms of users, Facebook saw its biggest jump in its mobile daily active users, which rose 34% to 745 million. Daily active users also climbed 18% year-over-year to 890 million on average for December 2014. However, the company did see a significant jump in costs and expenses, which soared 87% to about $2.7 billion, attributed to the stock's initial decline on the report.