Last Thursday Facebook released its inaugural earnings report since hitting the stock market in May, and the results were not as spectacular as many had hoped for.

Although it was the first American company to debut with a value of more than $100 billion, Facebook reported a net loss of $157 million for the second quarter after taking hefty stock compensation charges related to its IPO. That’s compared to a net income of $240 million for the same quarter a year earlier.

What has worried investors even more is that the company has not released any financial forecasts or outlook on the current period. Share prices debuted at $38 in May but have now dropped a third of value and are at $24.

Zuckerberg said that the company was seeing ‘encourgaing results’ from new advertising services and that they now have a ‘clear path’ to build a strong mobile business. He did however dispel rumours that he will reduce a Facebook smartphone, saying it made little sense to dive into hardware but adding that he was constantly looking to improve the mobile experience.

Source: The Irish Times

Tags: Facebook, IPO, Mark Zuckerberg, Nasdaq