Facebook may have delivered a decent quarterly financial report yesterday, but that apparently did little to quell investor concerns about the company, which only went public earlier this year. Facebook's stock took another tumble today, falling $3.03 to $23.81. That 11.3% decrease in stock price led to Facebook's stock hitting a new all-time low, and it doesn't seem like the stock is going to recover anytime soon.
Despite the fact that Facebook did post a profit and did report a growth in the number of users for Q2, that apparently wasn't enough for Facebook's investors. Revenue did grow in Q2, but not as much as it did in Q1, which gave investors some cause for concern. That isn't the major problem Facebook's investors have with the company's direction, however, as it seems that many of them are concerned about Facebook's mobile ad growth. As far as they're concerned, Facebook isn't making nearly enough money from mobile advertisements, while more and more Facebook users are accessing their profiles from mobile devices.
The result is a stock price that now sits at nearly 40% below the price it started at when Facebook initially went public. Any way you slice it, that isn't good for the company or current investors - though it may be good news for those waiting to jump in when the price is low. Indeed, CNET is reporting that this week has taken quite the toll on Mark Zuckerberg's pocketbook, with the Facebook founder losing a mind-numbing $3 billion since Wednesday. It's going to be a long and bumpy ride for Facebook in the coming weeks and months, but at the very least, it should be pretty interesting for outside observers.
[via USA Today]