delivered strong earningsand the market went nuts … until it didn’t.
The stock was up 15% in after-hours trading after Facebook beat on the top and bottom line, posting healthy growth.
EPS was $US0.25 (up 108% year-over-year) versus expectations of $US0.19. Revenue was $US2.02 billion (up 60% year-over-year) versus expectations of $US1.91 billion.
Monthly active mobile users was up 45% on a year-over-year basis, and mobile ad revenue was up 49%. Half of its ad revenue is now mobile.
Basically, it was all good all across the board.
But then Facebook management had to go and open its mouth.
On the earnings call, CFO David Ebersman admitted that it was seeing a dip in teenage usage. This seemed to spook the market and the stock fell back to earth.
By the end of the call, Facebook was down in after-hours trading. The 15% rally was totally killed by management on the call.