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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Mark? Get
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Shares of FB were
down 8.50% on Thursday.
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