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Facebook 3Q results fly past expectations

NEW YORK — Concerns about Facebook’s ability to keep young teens coming back every day spooked some investors, even though the company’s latest quarterly results showed continued strength in mobile advertising and beat Wall Street’s expectations on all counts.

Shares of the world’s largest social network spiked then turned lower in after-hours trading Wednesday evening after its third-quarter results came out. By midday Thursday, though, Facebook’s stock was trading about 5 percent higher as investors digested the news.

At issue was a remark by Facebook Inc. finance chief David Ebersman, who said the company saw a decrease in daily use among younger teenagers, an important but fickle demographic.

In addition, the company said that it doesn’t expect to significantly increase the number of ads it shows in users’ feeds, a decision that could slow down Facebook’s advertising revenue growth.

After soaring as much as 18 percent to $57.98 after the quarterly results came out, shares of Menlo Park, Calif.-based Facebook slid to $48.44 in extended trading during the company’s conference call Wednesday night. On Thursday, the stock fluctuated between $41.50 and $51.40 and was up 3 percent at $50.48 in midday trading.

 

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