From my Forbes.com blog The New Persuaders:
Facebook managed to hit the second-quarter earnings numbers investors had expected, but that wasn’t nearly good enough as shares plunged in after-hours trading.
The social network earned a non-GAAP 12-cent profit, on target with expectations, on revenues of $1.18 billion, the latter up 32% and a tad above estimates.
Ad revenue was up 28%, to $992 million, well above analysts’ forecasts, though still below the first quarter’s growth rate. Facebook suffered a net loss of $157 million, or 8 cents a share, largely because of accounting for employee stock plans post-IPO.
Shares rose as much as 6% in extended trading initially, but then quickly fell back almost 11%. That’s probably at least partly because Facebook didn’t offer a forecast, at least ahead of the conference call. They fell more than 8% at the market close today. They now sit at an all-time low of just under $25. That’s 37% below the $38 IPO price.
A quick take from Global Equities Research analyst Trip Chowdhry: “Overhyped and underdelivered.”
Here’s what CEO Mark Zuckerberg and other executives had to say about the quarter in the company’s first earnings conference call: …
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