Facebook reports jump in profits

The social media company reported net income was up 11% to $891m (£579m) for the period between July and September compared with $806m last year.

Facebook also reported strong user growth in developing markets.

Investors have been waiting for signs that Facebook has made money from Instagram and WhatsApp, and for increased revenue from video.

Facebook chief Mark Zuckerberg said the company was "focused on innovating and investing for the long term".

Facebook has said in the past it planned to grow advertising revenue on Instagram and Whatsapp organically, but investors have been anxious to see specific plans.

The company, which is already the world's largest social media site, reported it gained 60 million new monthly active users in the third quarter, bringing its global users to 1.55 billion.

A growth in monthly active users means greater reach for advertisers using Facebook.

The company said Facebook and Instagram account for one in every five minutes Americans spend online.

Facebook has been focused on efforts to get more small businesses to advertise on its website.

Last week the company introduced a new slideshow feature that allows advertisers to produce lower cost videos for their products.

Facebook was also looking to show strong growth in its mobile users with mobile being the platform of choice in developing countries.

The number of mobile daily users was up 27% in September to 894 million.

Beyond social media

Investors had been watching to see the levels of spending as Facebook looks to grow and move beyond basic social media.

It bought the virtual reality company Oculus Rift for $2bn in 2014.

Oculus is virtual reality display that individuals wear on their heads. Many media analysts think it could change the gaming industry.

On a call with investors, Facebook said it expected to release Oculus technology at the end of 2016.

It will be connected to gear created by Samsung and sold for $99.

(BBC)