SAN FRANCISCO (Reuters) - Facebook the company reported revenue growth slowed down significantly, does not provide financial forecasts, to quell worry about its ability to improve the growth of advertising, its shares plunged to a record low.
More than $ 10 billion U.S. dollars, the value of its inaugural earnings reports become since the first U.S. companies and appearance, Facebook reported second-quarter revenue rose 32 percent to $ 1.18 billion average forecast line.
However, it does not provide a current of prospects, some investors had hoped.
$ 38 in a crazy after-hours trading, hit below $ 24 on Facebook, has shed a third of its value, because of its random shares may debut.
See encouraging results for the company's new advertising service, and that Facebook now has a "clear path" to establish a 28-year-old Chief Executive Mark Zuckerberg create Facebook in his Harvard University dorm room a powerful mobile business.
Facebook has crossed the 8-year breakthrough neck growth, eventually leading to its future from the party.
On the contrary, its stock price has to move south, as investors questioned its valuation of more than 50 times earnings, its long-term ability to maintain and migrate users to the growth of mobile devices.
Monthly active users grew to $ 95.5 billion at the end of the second quarter, from 90.1 billion by the end of March. Mobile monthly active users jumped 67 percent over the previous year's 543 million users, join the Facebook business have only recently begun to further pressure to provide a limited form of mobile advertising.
"They were defeated, but the street looking for more, which is why I think after the initial rebound in the shares turned, said:" Michael Matousek, senior trader at U.S. Global Investment Corporation, manages about $ 30 billion. "With the stock market's big problem is about how it will make money one billion users, many people think they can not be money to these users.
"It does not look good with this new information. I do not want the story to be broken, but the story is breaking down."
The company said its capital expenditures more than tripled to $ 41.3 billion in the second quarter.
A challenge to re-
Facebook growth rate in the second quarter of this year 2011, when it began to disclose the information, since the first three months of the slowest.
In the past few years, it has been steadily building a Web page power, Google Inc. and Yahoo Inc. on the challenges of the consumer's online time and advertising revenue. Now, mobile devices such as smart phones and tablet PCs to infiltrate the deeper of the consumer market, the company is trying to drive away their advertising revenue.
BTIG analyst Richard Greenfield said: "In fact, there is no guidance at a news conference, there may be caring for people throughout the year is expected to be realized".
"Economic growth slowed down significantly on the basis of the user and income, and no guidance, to make people believe its growth, a large part of investors to worry."
David Ebersman, Facebook's Chief of Finance, said in an interview with Reuters, the mobile as the representative of Facebook in the long term a great opportunity.
Last Wednesday, the leader of the social game Zynga - which accounted for a Facebook revenue and cut its 2012 earnings forecast, facing the same challenges - earn mobile users, stunned investors.
This helps to wipe away the value of Facebook, 9% in last Thursday's regular trading.
2011 public high-tech re-dot-com frenzy gripping the back of the prospects in the Wall Street group is the heat between Zynga and Facebook. Company with fellow 2011 debutante Groupon, since go into a tailspin.
Last Thursday, Facebook posted a net loss of $ 157 million in the second quarter, or 8 cents per share, after taking stock-based compensation costs related to its IPO significantly. Compared to same period last year of $ 240 million, or 11 cents a share, net income.
Deducting expenses, Facebook said it has won 12 cents per share, in line with Wall Street's expectations.
Income of up to three months ended June 30 was $ 1.18 billion, compared with $ 89.5 billion in the same period last year.
Executives on a conference call, told analysts the company will continue to invest in the establishment and strengthening and mobile applications, strengthening and integration of the popular gadgets such as Apple's iPhone and iPad eyes.
Zuckerberg dotted line, it will try to design their own smart phones widely reported, saying it was not make much sense to go down to the hardware, but added that he was constantly looking to improve the mobile experience.
Facebook's shares, the issue price of $ 38 dropped 37 percent. The stock market dive, to $ 23.83 in after-hours trading, from $ 26.85 on the Nasdaq close.
1.59 billion shares changing hands, above the vault of the stock of the most active list on NASDAQ hours after.
 

 



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