Facebook’s revenue gain follows Google Inc.’s results last week, when the Web-search company posted sales that exceeded analysts’ estimates, largely based on the strength of online ads. Yet while Google reported a 6 percent decline in the average price of its ads, which was offset by a higher volume of promotions, Facebook has been able to charge more for fewer ads.

Facebook and Google are taking share from other Internet companies such as Yahoo! Inc., which last week reported a decline in quarterly sales and missed analysts’ projections.

?In total, Facebook accounted for 5.8 percent of worldwide digital ad revenue in 2013, up from 4.1 percent in 2012, according to EMarketer Inc. Digital ad spending worldwide rose 14.8 percent to $120 billion last year and is projected to reach $140 billion this year.

Eoin Treacy's view

Earnings really do matter which helps to explain Facebook’s outperformance relative to most of the other social media companies. The social media sector is highly varied both in terms of the products offered and the revenue generation models employed. 

LinkedIn, primarily a tool for head hunters, is developing its news and opinion status and follows a subscription model.  The share appears to be bottoming following what has been a steep decline. 

Groupon is susceptible to cannibalism by other coupon and discount sites and its share remains under pressure. 

Facebook on the other hand might have a social media platform but is a potent competitor in the lucrative mobile advertising market. It appears to have outclassed Twitter in terms of successfully carving a niche from the mobile advertising sector.