Facebook’s shares shot up on Thursday after it unveiled stellar results.
Investors worries were dispelled that the social media site would not be able to make money from adverts on mobile devices.
Founder and chief executive Mark Zuckerberg said Facebook will “soon have more revenue on mobile than on desktop” computers.
Indeed, smartphones and tablets accounted for almost half of its total advertising revenue in the second quarter.
Analysts also expect further growth from new advertising on Instagram – the photo site it bought recently for one billion dollars – as well as with the 15-second video ads Facebook is planning to roll out.
As growing numbers of consumers take to their smartphones to access the internet, companies have struggled with the challenge of displaying ads on those smaller screens.