Stock in social networking giant Facebook on Wednesday enjoyed its biggest daily gain since its initial public offering in May, after the company reported better-than-expected revenue for the third quarter.

Facebook's shares gained 19 per cent to $23.23 on the NASDAQ Stock Market. It was the stock's highest closing price in the last five weeks.

The social networking site reported a growth of 32 per cent to $1.26 billion for the third quarter. Analysts had projected a year-on-year revenue growth of 29 per cent to $1.23 billion.

However, the social networking site suffered a net loss of $59 million in the same quarter as compared with net income of $227 million in the corresponding period of last year.

Income from operations was reported at $377 million, down from $414 million for the corresponding quarter of previous year. The company also announced that it generated 14 per cent of its revenue from mobile advertising, which raised a question how the company would respond to the globe's shift to mobile computing.

Facebook IPO had made debut on 18th of May this year, with a valuation of more than $100 billion. At that price, it was more expensive than 99 per cent of all S&P's 500 Index companies. But, through Tuesday's close, the stock had lost 47 per cent from the company's IPO price of $38.

Facebook is the world's most popular social networking site, with more than 950 million active users worldwide.