Tuesday, July 31, 2012

Facebook Drops To Record On Growth Concern




According to Bloomberg Facebook Inc. (FB) dropped as much as 6.7 percent to a record low, the third straight day of declines after the world’s largest social-networking service reported second-quarter results that showed slowing growth.

Shares slumped to as low as $21.61, the lowest intraday price since Facebook held an initial public offering on May 17. The company is trading at less than half the intraday high of $45 it reached on its first day of trading.

Facebook disappointed investors last week when it reported sales growth of 32 percent, down from 45 percent in the first quarter, and refrained from providing a sales or profit outlook for the year. The company also posted slower user growth and is grappling with concerns about how well it can boost advertising on mobile devices.

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