What Does the Facebook Growth Story Look Like?

Apparently, Facebook (NASDAQ:FB) did not get invited to the market rally party on Friday. Shares were off as much as 3 percent while the markets soared around it and Google (NASDAQ:GOOG) hit a fresh all-time high. Analysts and investors are apparently punishing the stock for its fourth-quarter and full-year 2012 results, which were released on Wednesday after the markets closed.

Ostensibly, the results were good. In fact, 40.1 percent revenue growth to $1.58 billion beat estimates for $1.53 billion, and earnings growth of 13.3 percent to $0.17 per share beat estimates for $0.15. Monthly active users climbed 25 percent year over year and daily active users were up 28 percent. Perhaps most importantly, mobile revenue increased 9 points to 23 percent of total ad revenue, a tremendous step in the right direction.

Investors are making great returns as markets roar higher. Join the party. Click here to discover our Feature Stock Pick now!

But behind the strong numbers were bad news bears, grumbling about shrinking margins, climbing costs, and a fuzzy monetization strategy.

Facebook, Inc. Stock Chart - FB Interactive Chart - Yahoo! Finance

More Articles About:   , , , ,