Facebook Is Hiding Important Information From Investors

 

 

Yahoo stock collapse

 

 

 

” On July 23, when Facebook reported its earnings for the second quarter, the company stunned everyone.

Revenues were $2.68 billion, up 67% from the same quarter during the year before.

  Even better, 62% of those revenues came from the sale of mobile ads, a business Facebook didn’t enter until 2012, after its IPO. Facebook is now a $200 billion company. That’s a huge number. Facebook’s market cap is now larger than Amazon’s and Yahoo’s combined.

  All of it has Facebook investors big and small thrilled. They should be! Anyone who bought in on Facebook’s IPO has doubled their money by now. 

  It’s still growing its user base. Mark Zuckerberg has shown he’s incredibly savvy about making aggressive acquisition offers. COO Sheryl Sandberg obviously knows how to generate ad revenues.

  All that said, there is one way Facebook is letting down shareholders: It’s withholding crucial information about its mobile advertising business. It won’t say how much of its mobile advertising revenues come from a product called “Mobile App Install Ads.” “

 

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