Weekly News Update 22/10/12 *Facebook Loss*



Source: http://www.bbc.co.uk/news/business-20051654

Facebook posts loss despite 32% rise in revenues

 

Facebook has posted a loss of $59m (£37m) despite seeing revenues rise 32% during the third quarter.

The world's most popular online social network revealed this week that its income rose to $1.26bn, between July and September.

The revenues exceeded expectations, but Facebook's performance remains in the red, following a loss of $157m in the previous quarter.

Facebook's shares have lost about 50% since its stockmarket listing in May.

The company is struggling to turn its online dominance into profits.

Facebook revealed that 604 million of its 1.01 billion users access its site using a mobile device.

"People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform," claimed the chief executive, Mark Zuckerberg, in a statement.

 

My Conclusion:

 

The results that facebook published this week are quite amazing. Facebook is the worlds largest social networking sites who just revealed that they have over 1 billion users. For this article to come out has got me in a shock because i thought Facebook would be hitting rocket high profits but instead they have made a loss. I think that with apps such as Instagram becoming more popular, Facebook will now see a decrease in there users and profits will either stay the same or decrease for the future. This just goes to tell how ever big your business is you can still make a loss.