Dive summary:
- Facebook reported its earnings after the bell yesterday, with revenue up 32% to $1.18 billion, and after adjustments for stock compensation, a profit of $295 million for the quarter.
- The numbers met or exceeded analyst expectations, but the stock was still hit after hours, and is down 14% in this morning to $23. Wall street is confusing.
- CEO Mark Zuckerberg highlighted the company's growth prospects, citing the 543 million people that looked at Facebook on their phone in June. He added, “The shift towards mobile is incredibly important.”
- Since its $38 IPO in May, the stock is down more than 37%, and it looks like that number is only going to get bigger today.
From the article:
Unhappy with Facebook’s first financial report as a public company Thursday, investors fled the stock in droves even as Mark Zuckerberg, the company’s chief executive, extolled its growth prospects to industry analysts.
Facebook’s stock lost 18 percent of its value Thursday. The first blow came during regular trading largely because of the poor results posted by Zynga, the social game company that uses Facebook as a platform.
