Facebook Inc (NASDAQ:FB) has crossed the $50 mark and is currently trading at $50.82 on a volume of 65.08 million shares. The stock has been heading northwards since late July and has almost doubled since then.

In a world where consumers are attracted towards smartphones and tablets Facebook Inc (NASDAQ:FB) has one billion users and is looking for unexplored regions to foster revenue. The company’s 40% revenue was from ad revenue from mobile in 2Q, it still has a long way to go.

In order to add additional source of revenue from wireless devices Facebook is testing advertisements for external mobile applications. The company in an email said “We’re currently running a second test to show Facebook ads off Facebook in mobile apps and on mobile sites, Our goal is to improve both targeting and relevancy of the ads people see. Since this is a test, we don’t have additional details to share.”

According to EMarketer’s estimates it is expected that Google Inc (NASDAQ:GOOG) would capture the 53% of the mobile ad market, while Facebook will capture 16%.

The stock is rated as a “Buy” by analysts

Jim Cramer has rated the stock as a “Buy”, UBS raised their target price from $45 to $60 and rated the stock as a “Buy”. UBS incorporated said that click-thru rates and ad product engagement has exceeded advertisers’ internal goals.

Ross Sandler analysts at Deutsche Bank further raised their target price from $43 to $62 and rated the stock as a “Buy”. He believes that the 2015 estimates to be quite conservative, which excludes the factoring the revenue of $1.8 billion which is expected in 2015. Facebook had bought Instagram for roughly $730 million. Sandler further believes advertising on Instagram could be launched by mid of 1Q14 which is expected to generate 15% additional revenue for the company in 2015. With the revelation of the video platform brought in by Instagram, the site saw 130 million monthly active users

Mark Zuckerberg CEO of Facebook said “There are so many directions to expand this in that we think that the right focus for now is to continue just focusing on increasing the footprint of Instagra.”

Sandler attributed the growth in the company to mobile ads and stated “Mobile users in US and UK are growing at ~20% Y/Y, while ROW is growing at 60%, which we view as a proxy for inventory creation. Further, FB stated that ad load is 1-ad-per-20-newsfeed-stories globally in 2Q, the ceiling likely closer to 1-per-5, suggesting a growing opportunity. Looking ahead, increasing the selection of ads in the system, improving the ad products, and layering in better targeting should drive higher monetization.”

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