Business

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.

Read more at Brisbanetimes.com.au
 

Topics:  facebook, ipo, shares, stockmarket




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Bronwyn Bancroft’s Colours of Australia

Artist Bronwyn Bancroftin front of one of her works in her exhibition at the Grafton Regional Gallery Colours of Australia.

Colourful Australia opened at the Grafton Regional Gallery.

It's time to bring out the winter woolies

Grafton's Clarence St shrouded in fog this morning. Photo was taken slightly after 8am.Photo Matthew McInerney / Daily Examiner

Cooler overnight temperatures here to stay

Pair paddles 60km to highlight depression

DETERMINED: Will Brighton and Todd Ives in Yamba during their 60km paddle from Woody Head to Wooli.

Will Brighton and Todd Ives share rewarding experience on the water

Latest deals and offers

Bronwyn Bancroft's Colours of Australia

Artist Bronwyn Bancroftin front of one of her works in her exhibition at the Grafton Regional Gallery Colours of Australia.

Artist Bronwyn Bancroft's exhibition Colours of Australia is introduced by her...

Malcolm Turnbull and Barnaby Joyce tour Rockhampton sweet potato farm

Prime Minister Malcolm Turnbull and Deputy Prime Minister Barnaby Joyce visit a...

Men's Shed possum boxes

(back l-r) David Abrahams, Frank heppell, Warren Moss, Kevin Wtkins and (front) Darcy Knight with some of the possum boxes the Grafton Men's Shed are making for the new highway construction.

Grafton Men's Shed members have made 65 possum boxes for Eco Logical Australia to...

Perfect time to invest in Northern Rivers property

The Northern Rivers rental market is tighter than Sydney making it the perfect time for investors to get better returns out of property than superannuation or banks deposits.

Low interest rates and tight rental market are prime time to invest