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Facebook stocks down despite revenues boost

Article By: ,  Financial Analyst
April 24, 2014 10:15 AM

The share price of Facebook fell yesterday (April 23rd) following the release of the company's latest financial results.

A statement from the firm stated that profits of $642 million (£383 million) were recorded by Facebook during the first three months of the year.

Facebook's revenues were revealed to be 72 per cent higher at $2.5 billion for the January to March period, which was in excess of initial estimations made by analysts.

Founder and chief executive Mark Zuckerberg stated that his company has had a "great" start to 2014, citing the firm's "strong and growing" business. Data revealed by the firm showed a surge in mobile advertising was one of the main contributing factors to the company's success in the first three months of the year and mobile now makes up 59 per cent of its advertising revenue, which is up from 30 per cent a year ago.

"We've made some long term bets on the future while staying focused on executing and improving our core products and business. We're in great position to continue making progress towards our mission," said Mr Zuckerberg.

Shares rebound

However, investors appeared to be unconvinced by the set of results and the comments made by Mr Zuckerberg, who was famously portrayed by Jesse Eisenberg in David Fincher's popular film The Social Network.

Shares in the company slide by more than 2.5 per cent on the Nasdaq yesterday, although they did rebound in after-hours trading, when the share price of the firm bounced back by 3.57 per cent. Investors will now be keeping a keen eye on Facebook stocks to see if this momentum continues in the coming days and weeks.

Facebook also revealed in its statement that David Ebersman is set to step down as chief financial officer after serving in the position for almost five years. His replacement is going to be David Wehner, who is currently Facebook's vice-president for corporate finance and business planning.

"David has been a great partner in building Facebook, and I'm grateful for everything he's done to help make the world more open and connected," said Mr Zuckerberg.

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