Facebook (FB) Shares Dip 11%, Hit New Post-IPO Low

							Robert DeFrancesco’s
TechStockProspector.com
July 27, 2012


Facebook (FB) Shares Dip 11%, Hit New Post-IPO Low
***********************************************************************************
Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

See the July 2012 Table of Contents and order the issue here:
http://www.amzn.com/B004T6Z0ME

***********************************************************************************

Following the release of mediocre Q2 results, Facebook (FB, $23.70) shares fell
11.7% today on heavy volume, at one point hitting a new post-IPO low of $22.28.
The stock is down 37.6% from its May IPO price of $38.

Investors are concerned about slowing top-line growth and the near-term impact of
the increased number of mobile users when it comes to monetization.

As of the end of June, mobile monthly active users rose 67% year over year to 543
million, and this group now represents 57% of total Facebook users. The company
is presented with the challenge of monetizing this massive and growing mobile base.
The total number of monthly active users advanced 29% year to 955 million.

For Q2, Facebook reported EPS of 12 cents, one cent better than the consensus
estimate, on revenue of $1.18 billion (+32.3% year over year), above the consensus
of $1.15 billion. Advertising revenue was up 28% to $992 million.

Needham thinks mobile will eventually pay off for Facebook and maintains its $40
price target on the stock.

Morgan Stanley is encouraged by early indications of Sponsored Stories
monetization and expects ad growth to accelerate over time. The firm maintains its
price target of $38.

But Barclays cut its target to $31 from $35 on increased operating expenses.

***********************************************************************************
The July 2012 issue of Tech-Stock Prospector is available at
TechStockProspector.com (subscription required), in the Amazon Kindle store (this
includes the Kindle for iPad/iPhone reading app) and on the Barnes & Noble NOOK
Newsstand.

Here are some of the topics covered in the July 2012 issue:

*Strategy Overview: Tech investors remain cautious
*Big Data Update: Informatica stumbles
*Big growth expected for enterprise social software
*Jive Software rallies on Yammer buyout
*Rackspace Hosting takes a dip
*ServiceNow IPO makes a splash
*A wild ride for Millennial Media
*Juniper Networks gets even cheaper
*Google is positioned for new battles
*Strong earnings from Tibco Software
*Yelp & Apple cozy up
*Why big investors like Skyworks
*Procera doubles its addressable market
*Datacenter Update: F5 Networks
*A cloud-software stock hitting new highs
*TSP Deal Report: Seagate Technology

To place an order, call TSP Customer Support at 800-392-0998 or visit
TechStockProspector.com

------------------------------------------------------------------------------------------------------
Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

Here’s the Kindle link: http://www.amzn.com/B004T6Z0ME

------------------------------------------------------------------------------------------------------

Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.

TechStockProspector.com, launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

For more information or to place an order, call 800-392-0998.