Shares of Facebook Inc(NASDAQ:FB) saw a slight
bounce back in stock prices and recovered almost $2 from its record low of
$22.28. The stock was recently trading lower 10.34% to $24.20.
This morning, shares of the company gapped down on
concerns that the company may not be able to generate sufficient income from it’s
bulk users base. Unlike other big companies, CEO Mark Zuckerberg didn’t provide any
financial updates, which has created panic among investors.
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Complete Insight About FB’s Earnings Here
Shares of the company have been showing selling
pressure since it debut in May and has lost 36% since May 18. Yesterday, the
stock ended lower by 8.50% after Zynga had reported lower profit and trimmed
its earnings significantly.
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.
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.
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