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Facebook Revenue Up 39pc – But Stock Slumps On Spending

Facebook Revenue Up 39pc - But Stock Slumps On Spending

The social networking company posted revenue of US$4.04 billion in its Q2, up from $2.91 billion, nearly three-quarters of it from advertising on mobile devices. 

However investors were spooked by a 82 percent jump in spending and the shares fell as much as 3.6 percent in after-hours trade.

Net income declined 9.1 percent, to $719 million from $791 million, a year earlier, reflecting Facebook’s continued heavy spending, particularly on staff. It added 873 employees in the second quarter, to a total of 10,955, some 52 percent higher than a year earlier.

Zuckerberg has previously said this would be a year of heavy investment in datacentres, new hires and other long-term initiatives, including virtual reality and solar-powered drones