Facebook hits financial forecasts. Shares still slump.


Wall Street has a downer on social media companies right now, even when their financial results meet analyst expectations.

Hence Facebook’s stock falling last night, despite the company hitting its expectations with Q2 revenues of $1.2bn and a net loss of $157m. The social network’s shares fell 11% to a new low of $24 – its IPO price was $42 earlier this year.

Here are the key figures. Facebook ended June with 955m monthly active users, up 29% year-on-year. It averaged 552m daily active users during June, up 32%. And it has 543m monthly active mobile users, up 67% on Q2 last year. Facebook’s revenues were up 32% year-on-year, with 84% ($992m) coming from advertising.

More stats? Nearly 1bn ‘pieces of content’ are shared through Facebook’s Open Graph every day, and the social network is making $1m a day from its Sponsored Stories ads.

No specific mention of music, but Facebook’s role in the digital music ecosystem is big enough that the music industry will be closely following its financial performance anyway.

Stuart Dredge

Read More: Analysis News
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