Facebook shares takes a hit
CNN's Erin Burnett deconstructs Facebook's first earnings since going public.
Facebook earnings: Good, but not good enough
Facebook's shares plummeted to all-time lows in after hours trading after the company's first quarterly earnings report failed to wow investors.
Shares of Facebook (FB) fell more than 10% to around $24 - nearly 40% below the company's initial public offering price.
Facebook did beat analysts' revenues expectations slightly and earnings matched forecasts, but that was apparently not enough for Wall Street.
Behind the numbers: Facebook is still posting strong growth. It generated $1.18 billion in second quarter revenues, up 32% from a year ago.
And while Facebook reported a net loss of $157 million due mainly to $1.3 billion in compensation expenses tied to stock-based compensation following the IPO, the company did generate a profit of 12 cents per share when excluding those costs.
Analysts were expecting sales of $1.15 billion and earnings (backing out the compensation charges) of 12 cents per share.
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With the stock price of Facebook taking a hit, it must be time for a lawsuit from the Winklevoss twins.