So you’ve seen the results, shares in Nasdaq-listed Facebook fell more than 10% in after-hours trading yesterday to an all time low – after having already fallen 8.5% during the day as Zynga twisted the knife and blamed Facebook for poor results.
Facebook shares now stand at $23.84, down over a third (37%) from issue price of $38. A quarterly loss of $157m was posted, as costs almost tripled to 1.93bn.
Like other advertising companies, (84 per cent of Facebook’s revenue comes from advertising – Facebook is an ad company), Facebook has yet to crack advertising in mobile media. Until it gets itself a phone or a mobile OS, it’ll be tough. Overall ad revenue growth is still strong (28%), but slumping fast (down from 48% six months ago). So questions from analysts turned to other potential sources of revenue for the ad company – and Facebook commerce – f-commerce – came up. Here’s what Zuckerberg replied on the future of Facebook commerce
“We’re building our platform and other companies can build on top of that. There will be companies that help transform industries, and we will get some of the value that we’re helping to provide… I don’t have more plans I’m going to share with you today about our product roadmap.”
So does this mean that Facebook sees its future as building ad-filled social pipes for other businesses to build stuff with? Interesting in a week where one of the leading pioneers and visionaries in Facebook commerce, CEO of the most popular e-commerce app for Facebook, Payvment – Christian Taylor – decided to quit and move on to new challenges.