Investors weren’t feeling especially friendly toward the social network company after its first quarterly earnings report and analyst call last night. The stock closed Friday at $23.70, down 11.7% — the lowest it’s been since it went public in May at an IPO price of $38. The stock touched $22.28 during the day, the lowest it has ever been. Friday also was the third most active trading day for Facebook, with 168.2M shares changing hands. The sell off is notable because analysts for the most part took Facebook’s Q2 results in stride. RBC Capital Markets’ Andre Sequin says that he was “pleasantly surprised by the presence and significant involvement of CEO Mark Zuckerberg on the call. The company did not offer specific forward guidance, which investors had hoped for, but instead stuck to qualitatively highlighting nascent projects.” Needham & Co’s Laura Martin urged investors to see a drop in the stock price as a buying opportunity. Cowen & Co’s Kevin Kopelman was a little more cautious saying that although “ad growth was better than we expected in the quarter, we remain concerned about the company’s ability to replace desktop ad and social game revenues with mobile revenues near-term, especially given the lack of clarity on Q3 trends.” Yesterday the company reported a Q2 net loss of $157M vs a $240M profit last year on revenues of $1.2B, +32.3%. The loss is largely attributable to accounting for stock based compensation; without that the earnings would be $295M, +3.5%.
Facebook Shares Hit New Low Following 11.7% Drop
For all of Deadline’s headlines, follow us @Deadline on Twitter
Sign up for Newsletters
Trending Now on Deadline
More From Lieberman
- Now That He's At Carmike, Can Bud Mayo Lead Theaters' Alternative Content Revolution?
- Cable Milestone: Operators Have More Broadband Subs Than TV Ones
- Look Out Gannett: Carl Icahn Buys 6.6% Stake
- Warren Buffett Sends A Mixed Message To John Malone As He Buys Into Charter But Unloads Starz
- Citing “Insulting” Criticism, Comcast And Time Warner Cable Withdraw Funding For Dinner Honoring FCC Commissioner
- Televisa Partners With MiTu To Develop Spanish-Language Digital Content