Reuters: Technology News: Facebook slumps as mobile ad growth fails to impress

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Facebook slumps as mobile ad growth fails to impress Jan 31st 2013, 12:56 Tweet Share this Email Print Related News Facebook's mobile ad revenue doubles in fourth quarter Wed, Jan 30 2013 Google rises as mobile advertising concerns ease Wed, Jan 23 2013 Google's fourth-quarter results shine after ad rate decline slows Tue, Jan 22 2013 Verizon posts weak fourth-quarter, promises a better 2013 Tue, Jan 22 2013 Facebook search to generate revenue, no rival to Google: analysts Wed, Jan 16 2013 Analysis & Opinion Counterparties: Like water for profit Oil barons and tech hipsters share a dark side Related Topics Investing and Taxes Simplified » Tech » Hot Stocks » Asian Markets » Media » Facebook » The Facebook logo is pictured at the Facebook headquarters in Menlo Park, California January 29, 2013. Credit: Reuters/Robert Galbraith Thu Jan 31, 2013 7:56am EST (Reuters) - Shares of Facebook Inc were set to open 7 percent lower on Thursday as a surge in fourth-quarter mobile advertising revenue failed to live up to Wall Street's high expectations. Three brokerages downgraded the stock of the No. 1 social network, which has struggled to develop a full-fledged mobile advertising business. Facebook has long established itself as one of the most important websites, but investors have worried that until the company's mobile advertising strategy takes off, revenue growth will remain shaky. The company reported a better-than-expected fourth-quarter profit on Wednesday and said its mobile advertising revenue doubled to $306 million, suggesting it was making inroads into handheld devices such as smartphones and tablets. Investors were looking for at least $350 million in mobile advertising revenue, Piper Jaffray analyst Gene Munster said in a note to clients. "While the trajectory of mobile growth may not be as steep as some investors were hoping, the theme of mobile as the future of Facebook remains intact," he said. BMO Capital Markets analyst Daniel Salmon, who downgraded the stock to "market perform" from "outperform", however said Facebook's 2013 stock performance would not be dictated by its ability to generate mobile ad dollars. He said new catalysts were necessary to drive Facebook's stock price up. Facebook's stock, which has lost over a quarter of its value since its botched debut in May, were down at $29.08 in premarket trading. The shares closed at $31.24 on the Nasdaq on Wednesday. (Reporting by Neha Alawadhi in Bangalore; Editing by Saumyadeb Chakrabarty) Investing and Taxes Simplified Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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