Facebook Inc(NASDAQ:FB) shares continued their rapid descent, their fifth straight day of declines as investors continued to dump the stock in large numbers.
The stock has kept hitting record lows, falling to as low as $20.87 at one point during trading hours. The stock has now depreciated nearly 45 percent from its May IPO price of $38 per share.
Can FB Shares Rebound? Get Free Trend Analysis
Facebook's second quarter results showed slowing growth in revenues and in the absence of a forecast for future quarters has not been able to convince investors about its earning capability.
Users are gravitating to the use of mobile devices in large nmbers and Facebook has been unable to garner enough revenues from mobile ads, suggesting that it is finding it difficult to monetise that space.
Get Free Trend Analysis on FB Here
Second-quarter revenue was $1.18 billion, Facebook reported on July 26, topping an estimate of $1.16 billion, according to data compiled by Bloomberg. Facebook’s operating margin dropped from a year earlier and payments-related sales were $192 million, below the $199.3 million average projection.
Revenue may climb 30 percent to $6.41 billion next year, from $4.94 billion in 2012, according to the average analyst estimate compiled by Bloomberg.