The mystery is over: We now know whether or not Facebook is actually making money. In its first-ever earnings report released today, the social networking giant reported a net profit of $0.12 earnings per share on quarterly revenues of $1.18 billion. The earnings report matched Wall Street’s expectations of $0.12 earnings per share and revenues of $1.15 billion. Advertising revenue accounted for $992 million of the company’s total revenues. Facebook’s share price dropped by more than 11% in after-hours trading immediately following the news, dipping below $24. A major reason for the drop was that Facebook only made money on the quarter after excluding the negative impact of pre-2011 restricted stock unit compensation. Without that adjustment the company would have read more..
Wednesday, 1 August 2012
Restricted Stock Unit-Quarterly Revenues-Earnings Per Share-Social Networking-Share Price
Tuesday, 15 May 2012
Underwriters-Share Price-Greenshoe-Facebook
Everyone wants a piece of Facebook, so the company's underwriters will likely exercise their option sell a "greenshoe" of up to 50.6 million additional shares, and Facebook will definitely increase its IPO share price range from between $28 and $35 to $34 and $38, I've confirmed with sources very close to the IPO. This means Facebook could sell up to 388 million shares to raise between $13.1 billion and $14.7 billion at a CNBC-reported valuation between $92B and $103B.A greenshoe is an SEC-permitted over-allotment option that can stabilize a stock's price by allowing underwriters to sell up to 15% more stock than the company originally planned to sell, but with the option to buy back the stock at the offering price if the actual price drops below this. By exercising the greenshoe, underwriters including Morgan Stanley, J.P. Morgan, and Goldman Sachs could help Facebook raise up to an additional $1.72 billion to $1.92 billion by selling up to 50.6 million shares, which could prevent high demand and limited supply from causing the share price to skyrocket and making the stock seem volatile."Quite likable indeed, har har" laughs some monocle-wearing banker on Wall Street." read more..