Facebook Shares Fall as the Company Portrays Increased in Expenses in 2015
Facebook's market value dropped one tenth as the company announced a rise in spending in the coming year along with a slowdown in revenue in the third quarter on Tuesday.
Investors have always given a very strong support to the social network company but its plans of strong spending shook the investors a little.
The company's costly acquisitions of WhatsApp and Oculus along with others have created a little worry among the investors. However Facebook's mobile advertising business has been bringing in swift and repeated revenue growth every quarter.
On Tuesday the shares of Facebook touched a record high of $81.16, just before the third-quarter results were reported by the company.
Dave Wehner, the company's Chief Financial Officer in a call, told the analysts Facebook is planning to increase 55 to 75 percent in its spending in the coming year. The largest social network in the world plans to invest more in Whatsapp, Oculus along with some other products which till now have not shown the profit which they actually should.
Moreover Facebook did not provide any estimation for the expected range of growth in revenue for 2015, which also adds to the worries of the investors.