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Investors don't like this

July 27, 2012

The social networking website Facebook has booked a net loss of $157 million (128 million euros) in the first quarter, since its high-profile flotation on the stock market. Investors cut and ran in after-hours trading.

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The Facebook logo is displayed outside of the US company's new headquarters in Menlo Park, California.
Image: dapd

Facebook shares plummeted nearly 9 percent in after-hours trading Thursday, following the company's first quarterly figures since its contentious May initial public offering (IPO).

The social networking site announced a net loss of $157 million between April and June, equating to an eight cent loss per share. In the same period one year ago, the company earned $240 million, or 11 cents per share.

Revenue, however, was up 32 percent year-on-year at $1.18 billion - slightly higher than analysts had predicted.

Facebook shares hit record low

Advertizing revenue made up 84 percent of the total Facebook income over the three months.

The company also announced an overall increase in users, with 955 million people or entities now registered with the social networking platform and using it at least once a month.

Over 500 million users are said to be active on a daily basis.

Facebook made IPO history for Internet businesses on May 18 this year selling its shares at a launch price of $38, meaning the company was valued more highly than Google was at the time of its 2004 initial public offering.

The share prices dipped sharply in the subsequent days and have never returned to the IPO levels. Following the quarterly figures' release on Thursday, Facebook stock dropped to its lowest value yet, sinking below the $25 mark for the first time.

msh/lw (AFP, AP, dpa)