Facebook Inc (NASDAQ:FB)
has shown some recovery from its 52-week low of $19.82 in the last week and now
up 2.70% at $21.66. The social network site ran into deep trouble last week
when Google announced the acquisition of Facebook’s most prominent app
developer Wildfire.
What
Technical Charts are Suggesting About FB. Get Free Trend
Analysis
Shares that had been overly subscribed and hyped at
the IPO of $38 had been crashed last week when the shares plunged to its new
low of $19.82. The 52-week high of $45 which had been achieved on the IPO day
itself had been when the IPO was followed by an estimate reduction by
underwriter Morgan Stanley on the Company’s revenue concerns.
The Company had already provided in its S1 filings
that it would be experiencing a lower active user metric in the near future as
the Company will increase its user base. But, the quarterly results had been a
setback for the already skeptical investors.
Facebook’s revenue of $1.18 billion and ad growth of
18% yoy was below the expected growth. Active user engagement and growth has
declined in the six months as compared to the last year. Diminishing revenue
from the increased usage of the site on mobile is still posing grave concern.
Growth in advertising revenue of 27.8% yoy on an increased ad pricing growth of
9% yoy on the ramp in Sponsored Stories and News Feed ads, which drove higher
conversion.
How
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Worldwide Total Monthly Active Users for the quarter
were 955 million growing only 29.2% yoy while Worldwide Mobile Monthly Active
Users increased 67.1% yoy to 543 million. Payments & Other Fee Revenue per
MAU increased 24.9% yoy to $0.20 while Total Revenue per MAU increased 2.4% to
$1.24.
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