By Tim Maytom
Facebook warned shareholders that it planned a dramatic increase in spending in 2015 which, accompanied by news of slowing revenue growth, caused a nine per cent slump in stock price.
The social media giant’s Q3 disclosure also included the first details of its $22bn (£13.6bn) acquisition of WhatsApp, showing that the OTT messaging service brought in only $15m in revenue during the first half of 2014, despite a 600m user base. Overall, WhatsApp had a net loss of $232.5m, but this was mostly made up of share-based compensation expenses and issuance of common stock below fair value.
The dip in stock price was the first sign of shaking confidence from investors who have previously provided unending support for Facebook, thanks to high revenue growth, quarter after quarter. As such, Facebook has suffered little criticism for high-priced acquisitions such as WhatsApp and Oculus.
In good news, the firm beat earnings projections, bringing in $3.2bn in revenue and growing its total user count to 1.35bn, with mobile-only users up 14.2 per cent since last quarter to 456m, or roughly a third of Facebook’s user base. Mobile advertising revenue now makes up approximately 66 per cent of ad revenue brought in by …read more
Source:: Mobile App News