New York: Shares of Facebook Inc, which were given a boost last week when the social networking company reported first quarter results that largely met analysts' expectations, may be over valued, financial newspaper Barron's said on Sunday.
Facebook closed at $28.31 on Friday, 60 per cent higher than last summer's low-point, but well below its initial public offering price of $38 last May. However, the company is probably worth no more than $25 a share, Barron's said, reiterating a stance it took in February.
Facebook trades for 75 times its 2013 earnings estimate using generally accepted accounting principles (GAAP), while Google trades for less than 20 times its 2013 earnings, the article said.
While a sharp rise in mobile ad revenue helped Facebook increase its overall revenues by 38 per cent in the quarter versus a year earlier, that mobile ad revenue came at the expense of desktop ad revenue, which was flat, Barron's said....more
11:36 AM, May 06, 2013
California: Facebook Inc's mobile advertising revenue growth gained momentum in the first three months of the year as the social network sold more ads to users on smartphones and tablets, partially offsetting higher spending which weighed on profits. New types of ads designed for smartphones, particularly ads aimed at enticing Facebook users to install mobile apps on their phones, helped lift revenue while traffic to the social network remained strong....
01:37 PM, May 02, 2013