Facebook stocks plunge amid revenue concerns
Posted on Jul 27, 2012 by equimedia
Social media giant Facebook saw its stocks plunge amid concerns over slowing revenue growth and little reassurance to allay fears over advertising problems.
The lack of a viable plan to address concerns about advertising monetisation across the quickly expanding mobile platform have no doubt contributed to financial forecasts that are likely to prove unsatisfying to investors.
Following the publication of its first earnings report as a public company, Facebook shares plunged by 14 per cent shortly after the start of training.
Equally worrying is the slowing revenue growth, compared to previous years.
Speaking to USA Today, Global X Funds research analyst Alex Ashby explained: "People are waiting for a really huge growth moment in revenue, advertising, dollars per user.
"People had expected that Facebook is going to revolutionise advertising … we think it's still a definite possibility, but maybe further down the road."
