Tuesday, 28 October 2014

Facebook just said something that sent its shares plummeting

Mark Zuckerberg, founder and CEO of Facebook, addresses a gathering during the Internet.org Summit in New Delhi October 9, 2014. Facebook Inc, which closed its acquisition of mobile messaging service WhatsApp on Monday, has no near-term plan to make money from the service, Zuckerberg said on Thursday. REUTERS/Adnan Abidi (INDIA - Tags: SCIENCE TECHNOLOGY BUSINESS TELECOMS) - RTR49I7Z

Facebook seems to be signaling that it’s ready for a spending binge. And investors don’t like the sound of it.


“We plan on 2015 being a significant investment year,” said David Wehner, the chief financial officer at the social media giant, when the company announced earnings after the markets closed. Shares tumbled. (They’re down roughly 9% after hours at last glance.)



That fall in the share price doesn’t look like it’s a result of the earnings themselves. The company had a pretty decent quarter, with sales up roughly 60% and unadjusted net income up roughly 90%.





Facebook just said something that sent its shares plummeting

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