Facebook
Inc(NASDAQ:FB) shares which have been at the receiving end of investors'
selling saw no respite on Wednesday as it continued its downward trend with no
positive news to reverse sentiments.
The
stock closed flat at $20.72, off session low of $20.22 on Wednesday after
slumping 5.50% in the prior session. The stock has now shaved off nearly half
its value since its IPO in May.
What Technical
Charts Suggesting About FB. Get Free Trend
Analysis
In
its 10-Q filing with the U.S. Securities Exchange Commission the world's No.1
social networking site had expressed its apprehensions over a shift to mobile
advertising hitting its revenue growth as mobile ads are cheaper than
traditional display ads.
In
its debut June quarter results, the company had shown slowing revenue growth.
Analysts and marketers now want the company to monetise its growing use of
mobile users.
The
company did not give any forward guidance for future quarters nor was there any
explanation on how the company planned to tackle the slowing growth. It however
had warned that costs and expenses would rise.
Investors
seem to have lost faith in the stock in the face of this uncertainty.
Wall
Street analysts, who had betted heavily on the future of the company have
forecast expenses to rise by a minimum 60 percent over the next two quarters
but are unsure if the company will be able to manage at least 30 percent
revenue growth.
How Should
Investors Play FB Safely, Find In Our Free Report
Investors
and analysts are looking for some specific figures from the social networking
site - even if it is about expenses. This could provide some clarity in making
their projections.
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