Facebook stock falls 13% after first earnings report
Ryan Martin / 4 years ago
Facebook cannot seem to catch a stroke of good luck these days, since its IPO launch onto the stock market its shares have continually fallen. The company’s first earnings report has seen shares fall a further 13% to $23.40, the company’s lowest ever share figures should the market close at that level. Facebook’s lowest close as of today is $25.52, so if today closes lower than that it will be a new unwanted record.
The reason behind Facebook’s decline on the stock market is all to do with their first earnings report. Whilst managing to meet the lower end of analyst predictions, generating $1.2 billion in revenue, the company still posted a $157 million loss for Quarter 2 of 2012. For context, this time last year Facebook posted a profit of $240 million.
The initial IPO listing of Facebook saw its shares come in at $38, a figure that is $15 higher than where Facebook’s share prices currently sit. Even though the news isn’t great for Facebook it hasn’t done worse than expected and hopefully it will be able to pick up its figures in Q3 – providing it doesn’t splash any more cash on acquiring other companies.
It is almost imperative that Facebook posts a good third quarter, to avoid discontent among shareholders and investors spreading and further devaluing the social media giant.