Facebook Struggles to Live Up to Advertising Expectations
Facebook continues to see a major share drop because it has failed to convinced investors it can consistently improve its poor advertising revenues.
After its first financial report since going public caused investor concern, the company chose not comment on its long term financial outlook in its second quarter earnings report.
This has contributed to Facebook shares now plummeting 3% to below $24 (£15) in after hours trading, which represents a third off their original IPO value.
Nevertheless, the social network says it has benefited from the launch of new ad formats and now has a "clear path" to creating a more robust mobile business.
Facebook has to date not offered any forecasts as to how it plans to monetise its 543 million monthly active users, which analysts say is crucial to its future success.
Operations Director at social media company Best Response Social, David Wain-Heapy, commented: "What's very clear is that Facebook needs to make a huge and concerted push into mobile. Mobile is the future but for the time being it's acting as a fundamental drag on the stock.
He added: "Facebook needs a stronger mobile strategy but that's simply not evident yet. Is it moving as fast as it should be within the mobile space? Probably not. The IPO may have seen it take its eye of the ball."