Shares of Facebook Drop as the Social Networking Company Fails to Match Expectations

Shares of Facebook Drop as the Social Networking Company Fails to Match Expectat

On Wednesday, Facebook reported its quarterly earnings for the initial three months of the year and surprisingly, Facebook failed to surpass the expectation of the analysts for the very first time since early months of 2013. After the announcement, the shares of the company, based in Menlo Park, California dropped two percent or more during the afterhours trading.

At present, Facebook has 1.44 billion active users on a monthly average. The figures are thirteen percent improvement compared to the numbers noted same time last year and the number has also increased for members who accessed the social network on their hand held devices like mobiles, at least once every month to 1.25 billion.

Almost three fourth of the advertising revenue earned by Facebook comes from mobile ads, as many more number of its users utilize their smartphones and tablets to access the social network.

Since 2012, Facebook's revenue generated from its mobile averters has grown steadily. That's the time when it started presenting appropriate advertisements for the small screen devices.

In the previous quarter, sixty nine percent of the advertising revenue came from the mobile ads.

The company is doing well in that aspect, but the overall slump in growth in revenue in the initial quarter of the year caused its shares to fall, following the announcement.