Facebook shares drop to new low
- 27 July 2012
- From the section Business
Shares in Facebook have fallen to a new low, as investors react to the social network's first set of results since its flotation.
Late Thursday, in its first report as a public company, Facebook said it lost $157m (£100m) from April to June.
Its shares plunged more than 16% in early trading before recovering slightly to end the day down almost 12% at $23.71.
Facebook shares were priced at $38 when it listed on the Nasdaq in May.
Facebook's results on Thursday showed that revenue in the second quarter of the year had grown 32% to $1.18bn, just beating forecasts. But analysts at Piper Jaffray said it appeared investors wanted "more than a slight beat".
The number of monthly active users (MAUs) rose 29% from the same period last year to 955 million, but some analysts question the reliability of this data given the number of fake profiles on the social network.
The number of people who logged in daily to Facebook's site from their mobile devices surged 67% year-on-year to 543 million.
But the company has yet to resolve how it generates profits as users move from the computer desktop version to accessing the site via mobile phone.
"We don't view these results as dramatically good or bad," said Citi analyst Mark Mahaney.
"Key questions remain: the future of Facebook mobile monetisation and the future of Facebook user engagement."