Facebook shares soared 15% Wednesday on blowout quarterly results -- but the stock lost steam after the company admitted young teens are losing interest in the site.
"We did see a decrease in [teenage] daily users [during the quarter], especially younger teens," Facebook chief financial officer David Ebersman said Wednesday, during the company's third-quarter earnings conference call with analysts. He said Facebook usage among overall U.S. teens was "stable," however.Ebersman's admission -- coupled with other bits from Wednesday's call, including the fact that Facebook isn't planning to ramp up the number of ads in users' feeds -- sent Facebook shares slightly lower in after-hours trading.
That was a big disappointment given that Facebook (FB, Fortune 500) shares had been up as much as 15% earlier in the evening, after blowing away Wall Street's sales and profit expectations for the third quarter.
Facebook's sales jumped 60% over the year to more than $2 billion. Excluding one-time charges, Facebook earned $621 million -- double the company's profit during the same quarter last year.
Strong mobile results: Perhaps even more pleasing to investors was that Facebook's mobile business in particular came in very strong. Mobile ads now account for 49% of all Facebook ad revenue, up from 41% last quarter and easily beating analysts' expectations.
That's impressively rapid growth, considering that Facebook began serving mobile ads just last summer.
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