Why Facebook Stock Dropped Today
Shares of Facebook (NASDAQ: FB) have dropped today, down by 6% as of 12:20 p.m. EST, after the company reported its fourth-quarter earnings results. Though the social networking titan beat expectations, investors are concerned about slowing growth rates.
Revenue in the fourth quarter increased 25% to $21.1 billion, which was ahead of the $20.9 billion in sales that analysts were modeling for. That all translated into net income of $7.3 billion, or $2.56 per share. Investors were expecting just $2.52 per share in profits. Family monthly active people (MAP) -- folks that use one of the tech giant's core services each month -- grew 9% to 2.89 billion.
Facebook CEO Mark Zuckerberg. Image source: Facebook.
Source Fool.com
