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