Are you keeping up with Facebook?

Facebook Investors Face a Cruel Summer

Facebook will announce quarterly earnings today, with investors scrutinizing how well the company is growing mobile revenue, what rates it’s charging for ads, and how quickly the company is piling up users and earnings.

The company’s near-term performance will color how Wall Street judges a financial pinch that is taking several quarters to unfold: Facebook’s new revenue lines are a long ways off while its costs are spiking right now. A string of new products in the first four months of this year — Graph Search , a new News Feed, and a mobile app suite called Facebook Home — are either trickling out to users slowly, lack advertising, or both as Facebook takes its time getting details of the products right. Facebook has said its costs, meanwhile, will rise 50 percent in 2013 as it hires aggressively.


Related articles

Enhanced by Zemanta

Leave a Reply

Your email address will not be published. Required fields are marked *