A Shift Right Under Facebook's Feet
On Thursday night Facebook (FB) reported in-line results for its first-ever quarter as a public company. It delivered earnings of $0.12 per share on revenue of $1.18 billion. Advertising sales rose 28% year over year to $922 million, accounting for 84% of the company's revenue stream. That was stronger than some were expecting. The number of monthly active users (MAU) rose to 955 million globally, up 29% year over year and 6% sequentially.
At first blush, the above led Facebook shares up as much as 5% in the aftermarket last night. But, as investors were able to delve deeper into the results, the shares fell as much as 10% in postmarket trading. In my view, the postclose rise reflected relief following a warning shot from social media gaming company Zynga (ZNGA) earlier this week, when it shared that changes on Facebook's website impacted player engagement and its outlook....490 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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