Facebook Profit Decline 79%

Facebook Inc. reported a decline in profit for the fourth quarter of 2012. According to official information the world's largest social networking site, the Facebook trimmed net income 79% to $ 64 million.

What is the cause? Facebook party call, this time drop in profits due to the Facebook effort to attract more users and advertising by increasing operating costs. Just so you know, Facebook operating expenses jumped 82% in the same period. The figure exceeded only increases revenue by 40% to U.S. $ 1.59 billion.

Indeed, this year, Chief Executive Officer of Facebook Mark Zuckerberg plans to increase back operational costs by 50% to recruit more manpower and launching new tools for advertisers. Figures tersbeut higher than analysts predicted team Pacific Crest Securities LLC are pegged rate of 33%.

However, according to Adam Schneiberg, portfolio manager BTR Capital Management, a move Facebook will hoist the investment and corporate profits.

"Wall Street tends to forgive the high operational costs of creating new peroduk. During steady income growth, Wall Street believes the company can record a profit," said Schneiberg.

After the market close last night (extended trading) in New York, 4.3% stake in Facebook eroded. Previously, Facebook had shares fell 11%.