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Facebook modest revenue beats forecast

, July 27, 2012, 0 Comments

Facebook shares went down by 16% on Friday, it was priced at $38 when listed in May. The result was in expectations, yet Facebook would beat the forecast not in a significant proportion but in a very modest way.

“Earnings per share of $0.12 for the second quarter of 2012”, even EPS was within expectation range, yet it posted a net loss for the quarter of $157 million. Revenue from ads was $992 million, that constitutes 84% of the total revenue. Monthly active users rose by 29% during the same period.

Various analysts attribute that the key to revenue is on how Facebook is able to monetize mobile medium and solve this critical aspect of it’s business.