Facebook posts first loss
FACEBOOK reported a loss of $US157 million in its first earnings report after its blockbuster public offering, and although the loss was in line with expectations the company's troubled shares sunk to a new low.
The world's biggest social network, which made a market splash in May, said the loss stemmed from accounting rules requiring Facebook to set aside reserves from restricted stock units before 2011, which were disclosed when the company went public.
The results showed growth for Facebook in overall revenue, operating profits and the number of users - which grew to 955 million by the end of the quarter, up from the 901 million users at the end of March. Facebook said daily active users increased 32 per cent to 552 million and mobile active users rose 67 per cent to 543 million.
Investors were not impressed with the result, however, pushing the shares to fresh low of $US23.94 in after-hours trading.
"They beat, but the Street was looking for more and that's why I think shares turned lower after an initial bounce," said Michael Matousek, a senior trader at US Global Investors.
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