Facebook stock market plunges after featureless results

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mark-zuckerbergJuly 27, New York: For the first time since its stock exchange listing, Facebook has released its financial results on Thursday evening of July 26. The first social networking world has announced a net loss of $ 157 million for the second quarter, triggering a new wave of sales of the title.

Based on the number of shares and excluding exceptional items, the Californian company, however, shows a profit of 12 cents, exactly the expectations of the analysts.

The net loss, whereas a year ago Facebook was receiving up to $ 159 million, is explained by the accounting treatment of stock options granted to employees and taxes related to these payments, which totaled $ 1.3 billion dollars.

Turnover was up 32% to just above expectations at $ 1.18 billion against 1.15 billion expected. Facebook said its advertising revenue had increased by 28% over one year to 992 million, and they now represent 84% of its revenue.

The founding CEO Mark Zuckerberg said in a statement that the company was “focused on investments in its priorities: the mobile Internet platform and social advertising.” Capital expenditure for the quarter have more than tripled to $ 413 million.

Facebook announced, on the other hand, the number of active users per month had increased 29% to 955 million at June 30, and 543 million users used the site from mobile devices, a figure 67% increase over one year.

Faced with these results featureless, the action on the stock market has plunged: it lost 11.34% to 23.80 dollars in electronic trading after the market close, 0 to 30 h – a loss of 37% of its value compared to its IPO price of 18 May The title had already lost 8.50% following the poor performance of the game publisher Zynga, which makes most of its revenue on the site.

Market analyst, Trip Chowdhry of Global Equities Research, noted that current earnings had increased by only 4% over one year in four years. According to him, “to justify a share price of 25 dollars, Facebook is expected to advance its revenue over 150% per year and management has no idea how” to do. For him, “Facebook (is) a great value” if it cost between 13 and 16 dollars.

Mark Mahaney, an analyst at Citi, noted, meanwhile, it was a deceleration from the first quarter, where sales climbed 45%, but he felt that the wrong context economic and strengthening of the dollar had been a factor. “We do not consider that these results are dramatically good or bad, added Mr. Mahaney. But key issues remain: the future of monetizing Facebook on the mobile Internet and the future of the involvement of users in their activities on Facebook.”

News Gathered by India News

Posted by on Friday, July 27th, 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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