LATE ACTION: Facebook Stumbles…10%, Starbucks Plunges 10%
Facebook (NASDAQ:FB) shares dropped more than 9 percent in late afternoon hours to make a fresh all-time low since going public in May. The social media giant reported a second quarter loss of $157 million, compared to a net gain of $240 million a year earlier. Adjusted earnings came in line with estimates at $295 million, or 12 cents per share. LinkedIn (NYSE:LNKD) shares also fell 1.8 percent on the news.
Shares of Starbucks (NASDAQ:SBUX) plunged 12 percent in late trading. The company reported net income for the recent quarter of $333.1 million (43 cents per share), compared to $279.1 million (36 cents per share) a year earlier. However, it fell short of the mean analyst estimate of 45 cents per share. “Despite coming in short of our expectations I am pleased with the increasing operating leverage we are seeing, the fact that this was our 11th consecutive quarter of record results and the fact that we achieved the results in the face of high legacy commodity costs and challenging economic and consumer headwinds in key markets. I am confident that we are operating with the discipline, flexibility and customer centricity necessary to enable us to continue driving EPS growth in excess of revenue growth over the long run,” Starbucks CEO Howard Schultz explained.
Despite posting a 96.3 percent decline in net income, Amazon (NASDAQ:AMZN) shares popped more than 1 percent late Thursday. Net income for the internet commerce fell to $7 million (one cent per share) vs. $191 million (41 cents per share) a year earlier. Amazon Prime is now the best bargain in the history of shopping – that is not hyperbole,” said Jeff Bezos, founder and CEO of Amazon.com.
After crashing nearly 40 percent during regular trading hours, Zynga (NASDAQ:ZNGA) shares continued to fall 2.7 percent in late afternoon trading. The company recently reported second quarter earnings that fell well below estimates. Zynga posted a loss of $22.8 million, compared to a net gain of $1.4 million a year earlier.