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.
While
the company's results last week roughly matched Wall Street expectations,
investors had hoped to see more progress in terms of user growth and in how the
company is capitalizing on the rapid rise of mobile usage. Investors wanted
Facebook (FB) to "show confidence they could grow the company, and they
didn't," Francis Gaskins of IPODesktop.com was quoted in USA Today.
(http://www.usatoday.com/money/story/2012-07-31/Facebook-stock-hits-new-low/56620852/1)
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.
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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.
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