Despite the improved revenue, Facebook posted a net loss of £100m. This wobbly result scared investors which resulted in the share price dropping 11% to $23.94 in afterhours trading. It is believed failure to offer financial forecasts, to quell fears about its ability to boost advertising growth, sent its shares plummeting. This senior Analyst at Greencrest Capital explained the fiction and the fact surrounding the Facebook hype.
The big payments to chief exec Mark Zuckerberg and shareholders would have made a profit of over $295 million. But the big elephant in the room is the fact that the mobile apps aren’t bringing in the advertising revenue that the company needs to sustain growth.
Written and Presented by Ann Salter