Facebook’s shares dived to an all-time low in after hours trading after the company’s first quarterly earnings report failed to impress investors. The social networking giant’s shares fell more than 10 percent to around $24, almost 40 percent below the company’s initial public offering price. However, Mark Zuckerberg’s company beat analysts’ revenues expectations faintly and earnings matched forecasts, but it was not enough for Wall Street.
The company continues to post strong growth with $10 billion in cash to end the quarter. Facebook generated $1.18 billion, compared to $1.15 million analysts were expecting, in second quarter revenues, up 32 percent from a year ago. Although the company reported a net loss of $157 million, due mostly to the $1.3 billion in compensation expenses following the IPO, Facebook generated a profit of 12 cents per share when excluding those costs. “Our goal is to help every person stay connected and every product they use be a great social experience,” said Zuckerberg highlighting the company’s investment in research and development as a positive. “That’s why we’re so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends.”
