Facebook Belly-Flops Into its First Earnings Report

Photograph by Ludovic/REA/Redux

To Wall Street, at least, Facebook just belly-flopped its first earnings report as a public company. The social network reported second-quarter revenues of $1.18 billion, up 32 percent from the same quarter last year, narrowly beating analyst estimates. But marketing and sales expenses quadrupled to $392 million, share-based compensation swelled, and margins fell from 53 percent a year earlier to 43 percent. Wall Street hated a lot of that, pummeling an already bruised stock. At one point during after-hours trading, the stock hit $23.75, an all-time low.

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