Facebook In-Line With Estimates, Investors Not Impressed
Facebook (NASDAQ: FB) announced its second-quarter earnings today, reporting an EPS of $0.12, in-line with the $0.12 estimate.
Revenues were $1.18 billion versus $1.15 billion, beating estimates by 2.6 percent.
Facebook's positive (anticipated) results come at a time when the company is struggling to prove its value. The social networking giant was dealt a significant blow after General Motors (NYSE: GM) announced in May that it would no longer advertise with Facebook. But in June, Ford (NYSE: F) and Coca-Cola (NYSE: KO) announced that they were satisified with Facebook's ability to get people talking about their particular brands.
Facebook recently paid $20 million to settle a lawsuit involving the site's use of Sponsored Stories. Despite the outcry from users (whose comments and images were used without their consent), hundreds of millions of people return to the social network every single day.
Yesterday afternoon, Facebook shares dropped more than six percent after Zynga (NASDAQ: ZNGA) reported lackluster second-quarter results. The stock continues to plummet today in after hours trading, dropping more than five percent.
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