San Francisco, CA, United States (4E) – Speaking at the TechCrunch Disrupt conference in San Francisco on Tuesday, Facebook CEO Mark Zuckerberg said that he was disappointed by the performance of the company’s stock that has disappointed many of their investors, but he vowed to improve results with the introduction of its mobile app that is more advertiser-friendly.
Since the company went public, Zuckerberg has faced wide criticism as the share price lost almost half of its value from its offering price, prompting a series of lawsuits from angry investors against the company and its financial advisers.
Facebook went public on May 18 at an offered price of $38 a share, but it quickly fell to less than $20. The stock closed at $19.43 after Tuesday’s trade, inching up by 3 per cent.
Among the reasons seen for the dramatic fall in share price is the concern about the company’s preparedness to shift its business to mobile devices, an area where the Palo Alto-based company is struggling to make money.
Zuckerberg admits that the biggest question on investors’ minds in the next couple of years is Facebook’s performance with mobile. He added that the company did not even put ads on mobile six months ago.
He expects the company to increase its revenues from mobile users in the long run as they are spending more time on the site through mobile devices.
For many stock analysts, it is clear that Facebook’s more than 900 million users do not automatically make money for the company. The company is also faced with increased competition from websites like Google for advertising revenues.