Facebook Shares Surge Over 6% After Rollout Of Instagram Reels
At the current price, Facebook shares are up 29.25% so far this year
Shares in Facebook soared 6.49 per cent to end at $265.28 on Thursday, a day after the internet major rolled out a new short-form video service called Reels within mobile app Instagram. Reels is Facebook's own version of social media rival TikTok. The Facebook stock rose more than 7.02 per cent at the strongest level of the day to touch the $266.60 mark, compared to its previous close of $249.12. Facebook owns Instagram.
Similar to TikTok, Reels users can record short mobile-friendly vertical videos, then add special effects and soundtracks pulled from a music library.
(Also Read: Instagram Reels Feature Officially Launched, Facebook's Short Form Video Answer to TikTok)
The debut comes days after Microsoft said it was in talks to acquire TikTok's US operations from China's ByteDance.
Last week, Facebook reported that its profit in the April-June period nearly doubled to $5.2 billion, on an 11 per cent growth to $18.7 billion in revenue, as the number of people using the platform monthly rose to 2.7 billion.
(Also Read: Facebook June Quarter Profit Nearly Doubles Despite Ad Boycott)
With that, the US-based social media company beat analysts' estimates for revenue. The revenue growth was its slowest ever but still far above analysts' expectations.
Ad sales - which contribute nearly all of Facebook's revenue - rose 10 per cent to $18.3 billion in the three-month period to June 30, as people under lockdown spent more time online and businesses rapidly pivoted to e-commerce.