Facebook Smashes Q3 Estimates, Shares Hit Record Highs

Facebook Inc FB shares reached new record highs after smashing third-quarter earnings estimates.

The social media giant delivered third-quarter earnings of $1.59 per share, topping analyst estimates by 31 cents. Sales also came in well ahead of estimates at $10.328 billion, beating estimates by $488 million.

"Our community continues to grow and our business is doing well," said Mark Zuckerberg, Facebook founder and CEO. "But none of that matters if our services are used in ways that don't bring people closer together. We're serious about preventing abuse on our platforms. We're investing so much in security that it will impact our profitability. Protecting our community is more important than maximizing our profits."

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Q3 Highlights:

• Daily Active Users increased 16 percent year-over-year to 1.37 billion
• Monthly active users of 2.07 billion
• Mobile advertising revenue represented 88 percent of total advertising revenue
• Facebook employee headcount up 47 percent year-over-year

Facebook shares spiked more than 2 percent immediately after the release, crossing $188 per share. At time of publication, shares were trading around $183, a few ticks higher from where the stock closed.