Facebook stock falls 15 pc following weak results

New York: Shares of Facebook fell about 15 per cent on Friday, a day after it reported loss in earnings for the three months ended June 2012. In the first hour of the trade the stock plunged by as much 14.99 per cent to a low of $22.77 on NASDAQ.

On Thursday, the company's poor quarterly performance dragged down its share by over 8 per cent. It had announced net loss of $157 million for the April-June quarter in the first earnings report since it went public, against net profit of $204 million in the year-ago period.

The loss was triggered mainly due to stock compensation expenses following the initial public offering.

The loss was triggered mainly due to stock compensation expenses following the initial public offering.

The company's share price has not crossed above $38 since the first day of its IPO trading. The stock had tumbled by 8.5 per cent to settle at $26.84 on NASDAQ.

On May 18, Facebook made history by launching one of the largest IPOs for a technology firm to raise $16 billion that valued the social networking site at $104 billion.

However, Facebook's much anticipated IPO was marred by technical glitches at Nasdaq.

Facebook has recorded a 32.29 per cent jump in revenues at $1.18 billion in the second quarter of 2012 on account of contributions from advertising business.

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