Facebook shares fall to record lows

"China Newsweek Network Report," according to reports, Facebook's second-quarter earnings show a sharp slowdown in revenue growth. On the basis of concerns about its ability to raise advertising revenue, Facebook's share price plunged to a record low in Thursday.

Facebook shares plunge to record lows

Facebook released its second-quarter earnings in Thursday, with a loss of $157 million trillion and a net profit of $240 million over the same period last year. In the second quarter, Facebook's revenues rose 32% to $1.18 billion from a year earlier, with 84% from advertising. But it does not offer some investors ' hopes of predicting the immediate future.

Facebook founder Mark Zuckerberg said the company's new advertising service saw promising results and that Facebook now has a "clear path" to build a strong mobile business. Its share price, however, is falling, as investors question its valuations over 50 times times earnings multiples and question their ability to keep mobile users growing.

By the end of the second quarter, Facebook's active users had grown from 901 million at the end of March to 955 million. Active mobile users jumped 67%, but Facebook recently started offering some mobile advertising services. Facebook has seen its slowest growth in the second quarter of this year since 2011, the first March. Now, as mobile devices, such as smartphones and tablets, penetrate deeper into the consumer market, Facebook is trying to catch up with them. Facebook's finance chief, David Ebersman, said in an interview with Reuters that mobile users are a great opportunity for Facebook's long-term development.

Facebook's Thursday report showed a net loss of $157 million in the second quarter. After deducting fees, Facebook said it won 12 cents per share, in line with Wall Street forecasts.

For now, Facebook shares have plunged to $23.83, down 37% from their IPO price of $38.

Analysts say stock prices tumbled because they didn't meet expectations

Facebook's shares tumbled 8.5% in Thursday, after failing to announce a subsequent budget, plunging its share price down 11% to a record low.

Michael Matousek, a senior trader at Global investors, said: "They meet even more than analysts expect, but Wall Street wants more, which is why stocks are falling after the start of the rally," Michael Matusaik. The biggest problem for equities is how Facebook makes money from 1 billion of users, many of whom think it is unable to convert large users into revenue. ”

EMarketer analyst Debra Aho Williamson Debra Aho Williamson, said: "They did not consume any resources, but did not meet the expectations of the people." ”

Forbes: Facebook's earnings per share is just in line with expectations, with no excitement associated with huge growth. This disappointment is not just for Facebook, but also for many of the hottest tech companies boasting social networking attributes and online business models, such as Zynga and Groupon. Facebook's results portend a second-round dotcom bust.

BusinessInsider: "These profit figures are too boring," says one equity analyst. "Facebook is clearly not a level compared to Google. It is ridiculous to say that Facebook may have surpassed Google recently, and it is impossible to rely on the current advertising business if there is a day. (Content from China Economic Network, financial Network (blog, Weibo))