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Facebook stock falls 13% after first earnings report

Facebook's stock down nearly 13% on weak second quarter results in premarket trading

| Business, Financial & Legal News | Posted: Jul 27, 2012 2:01 pm

It seems as though Facebook just can't catch a break. So far in premarket trading, Facebook stock has fallen 12.8% to land at $23.40. If Facebook can't get its stuff together and the stock stays near that level, it will be Facebook's lowest closing yet. As of right now, Facebook's lowest closing is at $25.52.

 

TweakTown image news/2/5/25043_1_facebook_stock_falls_13_after_first_earnings_report.png

 

The reason behind this drop is actually fairly simple. Facebook had a disappointing showing in the second quarter. While Facebook met analysts expectations, meeting low expectations isn't something to be proud of. They managed a $157 million loss on $1.2 billion in revenue. This time last year, they posted a $240 million profit.

 

This latest stock drop comes just two months after the social networking giant went public. The initial public offering was listed at $38, nearly $15 higher than the current stock price. Investors haven't seen the stock at $38, or anywhere near that, since the first day of trading. It doesn't appear to be coming around anytime soon, either.

NEWS SOURCES:News.cnet.com

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