Shares of Facebook Inc (NASDAQ:FB) are posting their biggest intraday fall, since their
May stock market debut, in today’s session with the stock tumbling over
15% to $22.82 an all-time low and briefly
created an all time low of $22.28 earlier in the session.
The world’s largest social networking site failed to
convince its investors that it had the potential to monetize its humongous user
base of close to a billion, especially in the mobile segment.
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The company swung to a net loss in its first reported
earnings after going public in May, mainly due to higher costs related to its
IPO. What’s worrying investors is that the company didn’t provide enough
details about its future monetization plans as users are quickly shifting to
mobile devices where the company has failed to earn sufficient advertising
revenues. Although, the company’s CEO Mark Zuckerberg remarked that
"Mobile is a huge opportunity for Facebook,” that was not enough for the
analyst community. But that was not enough as we all know there would be more
and more Smartphone users going forward (thanks to Apple Inc.).
The key question is how would the company be able to earn
from increased mobile users. In the second quarter, the company did fairly
well, compared to analysts’ estimate, with earnings coming in at $1.12 a share on a revenue of
$1.18 billion.
As we all know, investors don’t like uncertainty and in case
of Facebook, there are several questions remained unanswered and that has
clearly been reflected in today’s session as investors are dumping their
holdings.
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On the other hand, Expedia Inc(NASDAQ:EXPE) share are
popping up quite smartly as the company unexpectedly reported much higher
adjusted earnings revenue despite the fact that the company Internet travel
portal had boosted its tech spending heavily.
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On back of strong earnings, the company decided to lift its
full year revenue and earnings guidance. The company now projects to report
high single-digit percentage with the possibility of low double-digit growth,
compared to previously guided mid-single-digit percentage growth in April.
For the second quarter, the company earned $105.2 million,
or 76 cents a share with revenue growth of 14% year over year to $1.04 billion.
Adjusted earnings stood at 89 cents a share, topping analysts’ target of 71
cents, with revenue of $990 million. Shares of the company soared 27% to $58.11
on heavy volume.
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