July 27, 2012
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of social networker Facebook (Nasdaq: FB ) have fallen by as much as 17% today to hit new lows after the company reported second-quarter earnings.
So what: Total revenue rose to $1.18 billion, which resulted in a GAAP net loss of $157 million, or $0.08 per share. Most of this was due to stock-based compensation expenses related to the IPO, and on an adjusted basis, Facebook posted a non-GAAP profit of $0.12.
Now what: The company has now reached a total of 955 million monthly active users, with growth international user additions. Ad revenue was $992 million, and payments revenue was $192 million. Worldwide average revenue per user increased to $1.28, slightly better than a year ago. Investors were a bit nervous about the lack of financial guidance for the coming quarter or the full year and continue to question whether Facebook is worth its lofty valuation.
Interested in more info on Facebook? Add it to your watchlist by clicking here.
More Expert Advice from The Motley Fool
After the world's most hyped IPO turned out to be a dunce, most investors probably don't even want to think about shares of Facebook. But there are things every investor needs to know about this company. We've outlined them in our newest premium research report
. There's a lot more to Facebook than meets the eye, so read up on whether there is anything to "like" about it today. Access your report by clicking here