Technology content trusted in North America and globally since 1999
8,345 Reviews & Articles | 63,623 News Posts

Facebook stock falls 13% after first earnings report

Facebook's stock down nearly 13% on weak second quarter results in premarket trading
By: Anthony Garreffa | 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.




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.


Related Tags