Facebook Shares Sink to New Low After 2Q Results

10:36 AM, Jul 27, 2012   |    comments
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NEW YORK (AP) -- Facebook's stock has hit a new low after it reported second-quarter results that disappointed investors.

The stock is down $3.58, or 13 percent, to $23.26 as trading opened Friday. Facebook Inc.'s initial public offering of stock priced at $38, and its low had been $25.52.

In its first financial report as a public company, Facebook said Thursday that revenue grew 32 percent to $1.18 billion in the second quarter.

Growth has slowed from earlier this year and from previous years. That's a concern for a newly public company. Investors are willing to value new companies highly, even if they are not making a profit, because they expect booming revenue.

Analysts also cautioned that the stock could be volatile because Facebook didn't provide a guidance for the rest of the year.