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Facebook Shares Tumble As Earnings Barely Beat the Street’s Low Expectations

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While the world waits to hear Mark Zuckerberg’s do his best Kermit voice on Facebook’s first ever earnings call at 5pm EST today, the market has already spoken. Earlier today the signs were already there, Reuters reported that Facebook shares dropped 7 percent in premarket trading. (After its recent earnings “disaster,” Zynga’s shares opened 40 percent down today.)

However, Facebook’s second quarter earnings, just released online in advance of the call, actually exceeded Wall Street’s expectations. By a hair. As AllThingsD notes, consensus had been that Facebook would post profit of 12 cents a share on revenue of $1.15 billion. However, the company showed profit of 12 cents a share on revenue of $1.15 billion. Business Insider hyperbolically notes that expectations were already “horribly” low, with consensus predicting “utterly miserable,” decelerating ad revenue growth of 19 percent year-over-year. Another sign of Wall Street’s bearishness on the company. Read More