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Facebook Shares Plummet in an Earnings Letdown (The New York Times)
Unhappy with Facebook’s first financial report as a public company Thursday, investors fled the stock in droves even as Mark Zuckerberg, the company’s chief executive, extolled its growth prospects to industry analysts. Facebook’s stock lost 18 percent of its value Thursday. VentureBeat Wall Street had tempered expectations for Facebook. The social network barely exceeded those expectations by posting $1.18 billion in revenue and earnings per share of $0.12 for the second quarter of 2012. USA Today Like nearly every business in social media and beyond, Facebook is betting a large portion of its future on mobile ads. “Mobile is a huge opportunity,” Zuckerberg said on the conference call with analysts. There had been speculation prior to the call that Zuckerberg might skip the conference call. Bloomberg Businessweek A new type of advertising, called Sponsored Stories allows advertisers to pay to highlight certain posts from others, so their friends and other members on the site can see them. Zuckerberg said this new ad product is already generating a million dollars a day in revenue, with half coming from mobile. ABC News Zuckerberg also shot down rumors about a Facebook smartphone. ”There are a lot of things you can build in other operating systems as well that aren’t really taking, that aren’t really like building out a whole phone, which wouldn’t make much sense for us to do,” he said. AllFacebook Both Zuckerberg and chief operating officer Sheryl Sandberg noted the importance of social ads. Sandberg called local social sharing, which is a necessary benefit for small and medium sized business, “the holy grail of the Internet.” Read more