Facebook`s shares are taking a hit after the company reported its second quarter 2012 results. The stock was down 11 percent in afternoon trading, pricing Facebook at just under $24 a share. That`s after an 8 percent dip in Thursday trading.
Facebook`s revenue rose to $1.18 billion in the quarter. That`s up from $895 million. Most of those revenues came from advertising. Still, the company reported a $157 million net loss, which compares with a net income of $240 million in the year-ago period.
Mark Zuckerberg, Facebook founder and CEO, didn`t have much to say about the loss.
"Our goal is to help every person stay connected and every product they use be a great social experience. That`s why we`re so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends," Zuckerberg said.
Lack of Guidance
Greg Sterling, principal analyst at Sterling Market Intelligence, noted that
Facebook said Thursday the company was still in an "investment phase" of development and that it was not going to be managed to a specific operating margin.
"This signaled to investors that in the near term they might have several more lackluster quarters," Sterling told us. "Facebook took great pains to talk about mobile and early promising results from their initial foray into mobile advertising. This has been an area of great concern among financial analysts."
Sterling also pointed to comments from Facebook COO Sheryl Sandberg, who spoke about the continuing need to educate marketers about the value and performance of Facebook advertising. Sandberg essentially said there was a wide gap between consumer usage of Facebook and ad spend. But she presented that gap as an indicator of potential future growth, not as a sign of weakness.
"Overall, financial analysts and investors may have come away with the impression that...
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