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4 Reasons Why Facebook Soared Today

Rick Aristotle Munarriz
October 24, 2012

What's that? Everyone's falling in love with Facebook (Nasdaq: FB  ) again?

Shares of the world's leading social networking website operator soared today after posting encouraging quarterly results last night.

I got brazen over the weekend, offering up four reasons why the stock was likely to head higher this week. I blow many calls like that, but since it appears as if I got this one right, I figured I would take a closer look at the four reasons in light of the report.

1. Earnings should soothe the bulls
Facebook merely met Wall Street's profit target of $0.12 a share in its first quarter as a public company three months ago. It held up slightly better this time around, surpassing the $0.11 a share that Wall Street was targeting.

Sure, Facebook's adjusted profit of $0.12 a share simply matched both its year-over-year and quarter-over-quarter mark of $0.12 a share, but resilient profitability and a 32% spike in revenue suggest that Facebook is just getting started.

"Until Facebook gives investors a reason to panic about its financial fortitude, don't panic," I argued over the weekend. I was right.

2. The upside to Google's downside
Google's (Nasdaq: GOOG  ) disappointing report last week weighed on shares of Facebook and Baidu (Nasdaq: BIDU  ) .

The connection didn't make any sense, especially since Google was hitting new highs earlier this month as Facebook and Baidu were struggling.

Google is being marginalized out of China, and the world's most populous nation has proven in the past that it's working on a