Facebook shares fell more than 15% on Friday as the lack of a company's financial outlook reinforced worries about its strategy for being profitable.
Facebook numbers recently have been in everybody’s mouth, Facebook inability to monetize their presence in mobile phones could force them to consume cash quickly in the short term.
The social network, which reported on Thursday its first quarterly results as a publicly traded company, managed to slightly exceed revenue expectations, investors wanted more than a slight improvement of expectations, based on reactions.
Most Investors are concerned about how social networking will generate revenues through advertising on mobile devices, they were expecting a strong sign of the company improves in sales but that strong signal hasn’t been present so investors are worried.
Analysts J.P. Morgan Securities said the stock could also be under pressure due to a restriction that expires on August 19, when some initial investors may sell their securities, flooding the market with shares.
Meanwhile, the launch of a so called Facebook cellphone that could help the numbers of the company seems pure speculation, the founder of Facebook Mark Zuckerberg has said that the launch of a Facebook phone, "really would not make much sense."
However, Zuckerberg himself has ruled out this possibility and several Facebook executives have said that social networking will continue investing to enhance its mobile application, and which provide closer integration with the iPhone and Apple iPhone.