Wall Street 'Likes' Facebook's Latest Results

When Facebook announced its third quarter earnings last week, you could almost hear the sigh of relief from Facebook’s investors. The numbers revealed that Facebook had successfully stopped the deceleration of its revenue growth and built a mobile ad business that contributes significantly to the company’s revenue. In response to the positive news, Facebook’s stock price jumped almost 20 percent on the next day.

Sometimes it is hard to determine, whether a company’s results are positive or negative. In these cases, we like to turn to the public markets to determine whether the results are considered good news or bad news. This earnings season, Facebook and Zynga, both struggling beforehand, have received the most positive reaction on Wall Street, while Netflix was promptly punished by investors for announcing disappointing user growth.