Market analysts who once heralded the public stock offering of the popular social media website Facebook are now saying the company has since failed to deliver on the highly-anticipated move and will have to make big strides in the growing mobile media market to see any real gains.
According to moneymorning.com, the first Facebook earnings report since the company went public was released late last month, and the numbers came in as low as expected.
Facebook met earnings per share estimates of 12 cents on revenue of $1.18 billion. Analysts had expected EPS of 12 cents on revenue of $1.16 billion. In layman’s terms, Facebook stock – at least so far – is not a good bet.
The earnings report also revealed another troubling aspect to investors: There was no sure sign on the horizon that the company, headed by wunderkind Mark Zuckerberg, would ever make the kind of money so many were expecting.
Facebook is estimated to have already captured 71% of the 225 million U.S. Internet users, leaving little room for U.S. growth. Stock has never come close to the $45 peak it reached on its IPO day, hovering under $30 for several weeks now, according to moneymorning.com.
Facebook has struggled to turn its users into profits as more use Facebook via mobile, an area Facebook has yet see any money from. Daily and monthly visitors totaled 552 million and 955 million respectively compared to last quarter’s 526 million and 901 million, respectively. Mobile users amounted to 543 million monthly users.
Reports surfaced last month that Facebook hired a team of former Apple Inc. employees to redesign the Facebook iPhone app, which is expected to generate much-needed advertising income.