Facebook (NASDAQ:FB) Fails to Put Growth Fears Down; Stock Plunges – FB, MEET, LOCM, AOL

Facebook Inc (NASDAQ:FB), world’s biggest social networking site, moved down in late trading on Thursday after its first earnings report as a public corporation showed a slower sales boost and narrower profit margins, unable to ease the fears over growth that have plunged shares prices almost 29%.

Facebook reported that operating margin, without few costs, was 43% in the Q2, a drop from 53% in previous year, amid a fourfold boost in sales and marketing costs. The company reported that revenue moved up 32%, the record low speed, and payments- related sales were $192 million, lower than the $199.3 million median forecast from analysts polled by Bloomberg.

CEO of Facebook Mark Zuckerberg led the conference call, addressing analysts for the first time since company IPO, issued no growth estimates and reported little else to support investors who fret that the corporation is overvalued.

Shifting readers focus to broader market, let’s consider market performance of other stocks that significantly affect same sector. MeetMe Inc (NYSE:MEET) rose +2.58% to settle at $1.99, Radio Local.com Corp (NASDAQ:LOCM) moved up +0.68% to end at $2.22 while AOL, Inc (NYSE:AOL) jumped +5.29% to finish on Thursday at $31.04.

Facebook Inc (NASDAQ:FB) last session volume of 64.60 million shares was higher than its average volume of 20.86 million shares. The stock after opening at $27.75 hit high price of $28.23 and then closed at $26.84 by scoring -8.50%.

FB generated revenue of 3.71 Billion in the following twelve months and earned $668.00 million. The Company showed a positive 26.95% in the net profit margin and as well as in its operating margin which remained 47.32%.

The FB past twelve months price to sales ratio was 15.47 and price to cash ratio remained 14.68.

The stock showed weekly downbeat performance of -7.43% which was maintained for the month at -18.90%. Likewise the negative YTD performance remained at -29.78%.

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