Facebook’s Revenue Jumps, But Profits Plummet!

Facebook released its 2nd quarterly earnings yesterday, with some big shocks followed by a drop in stock prices.

Facebook has grown at an almost unprecedented pace since inception, and now their growth problem is that almost everyone already has a Facebook account, so they need to target other opportunities outside their core browser application and into new products and continue to push their mobile services.

The drop in stock prices reflects a 9% drop in profits; Facebook (FB) noted that this drop is because they are investing billions into the future development (and monetization) of some of their other projects, like the WhatsApp messaging service. It is also adding “smarter” ads to Instagram, and putting more resources into Oculus Rift, an upcoming virtual reality headset. It is also putting more resources into the development of the Facebook mobile apps, which have seen the cost-per-ad more than double over the last year.

Read More on Yahoo! Finance

Comments are closed.