SAN FRANCISCO: Facebook Tuesday reported its quarterly profit nearly doubled but saw its stock pounded after outlining a plan to invest heavily in the future instead of revelling in short-term riches.
Facebook shares, which had been near record levels in recent days, dropped more than eight percent to $74.15 in after-market trades.
The drop followed an earnings call in which executives said they will pour money into talent and technologies with the potential to pay off handsomely down the road.
"Their commentary tanked the stock," said independent analyst Rob Enderle of Enderle Group in Silicon Valley.
"They gave the impression that regardless of how things are going, costs are going to get out of hand; I think that is what the market walked away with."
Looking a decade out, Facebook founder and chief Mark Zuckerberg envisioned hitting milestones regarding machine intelligence and extending Internet access to billions more people on the planet.
"We are going to continue preparing for the future by investing aggressively, connecting everyone, understanding the world, and building the next-generation in computing platforms," Zuckerberg said.
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