Communication services and internet ETFs popped after Facebook (etftrends.com/quote/FB) third quarter results easily topped Wall Street expectations.
On Wednesday, the Communication Services Select Sector SPDR Fund (NYSEArca: XLC) gained 2.9%, Vanguard Communication Services ETF (NYSEArca: VOX) rose 2.9%, First Trust Dow Jones Internet Index (NYSEArca: FDN) increased 3.9% and Global X Social Media ETF (NasdaqGM: SOCL) advanced 3.4%.
Fueling the momentum in the communications and media segments, Facebook revealed better-than-expected earnings growth in the third quarter, along with stabilizing profit margins and plans for greater monetization of its Messenger, WhatsApp and Instagram platforms despite concerns around the company’s user engagement, CNBC reports.
“Monetization of core Facebook and Instagram assets still has material upside potential and Messenger and WhatsApp are beginning early stages of monetization,” RBC Capital Markets analyst Mark Mahaney, said in a note. “Even under pressure, Facebook’s producing impressive growth.”