Today Facebook reported its second quarter financial results, including revenues of $1.18 billion, and earnings per share of $0.12. Analysts had expected revenues of $1.15 billion, and non-GAAP earnings per share of $0.12. Ad revenue was expected to be $921 million. For the quarter, the company reported ad revenue of $922 million, beating that expectation by a hair.
All in all, matched expectations but not a blow out. The Street doesn’t like it either, Facebook’s stock is down 8% in after hours. Although not as bad as Zynga’s results yesterday (down 40%).
But right now, both of these stocks seem very painful to own. The short interest on them is so high that the fluctuations on them are wild each way.
I do think that both of these companies will be around for a long time. The goal, as Mark Pincus said in his PandoMonthly talk, is to become an Internet treasure (defined by lasting decades) and I think both of these companies are well on their way to becoming that. But right now, both of these stocks seem very painful to own. The short interest on them is so high that the fluctuations on them are wild each way.
p.s. my favorite stat in the numbers: “Facebook’s mobile users now stand at 543 million, up 67 percent from last year.” Just incredible.