July 27 (Bloomberg) -- Gree Inc. led a drop among Japanese operators of social-networking sites in Tokyo trading after Facebook Inc.’s profit margins narrowed.
Gree, Japan’s second-largest social-network gaming site operator, fell 7.6 percent to close at 1,214 yen, the lowest since June 4 on the Tokyo Stock Exchange. DeNA Co., operator of the Mobage network, plunged 9.7 percent, Mixi Inc. declined 2.5 percent and Dwango Co. dropped 1.6 percent.
Facebook fell in New York trading, bringing its decline to about 29 percent since it went public in May, on concern the social network’s sales and profit may grow more slowly than some had expected.
Operating margin, excluding certain costs, was 43 percent in the second quarter, a decline from 53 percent a year earlier, amid a fourfold surge in expenses for sales and marketing, Facebook said yesterday. Payments-related sales were $192 million, below the $199.3 million average prediction from analysts surveyed by Bloomberg.
CyberAgent Inc., the Tokyo-based operator of the Ameba blog website, plunged after its fiscal third-quarter operating profit missed analyst estimates. The stock fell 22 percent, the biggest drop since April 2000, to 175,900 yen.
Operating profit in the three months ended June 30 rose 8.3 percent to 3.49 billion yen ($44.6 million), CyberAgent said yesterday. That compared with the 5.2 billion-yen average of seven analysts’ estimates compiled by Bloomberg.
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