Facebook shares down 13% as earnings disappoint

The social network's stock is now below $24 in premarket trading, knocked down by word of a net loss for the second quarter.

Facebook

Facebook investors are bracing for yet another disappointing day on the Nasdaq.

The social network's shares are trading down 12.8 percent to $23.40 in premarket trading today. If this keeps up and the stock closes the day around that level, it would mark the stock's lowest per-share closing price since Facebook went public in May. Facebook's lowest closing price so far is $25.52.

Facebook's drop is due to a disappointing showing in the second quarter that saw the world's largest social network post a loss of $157 million on $1.2 billion in revenue. During the same period last year, Facebook earned a profit of $240 million.

The news, while disappointing, was in line with Wall Street expectations. But meeting expectations of poor performance does little to quell discontent among investors.

Facebook's latest stock drop comes just two months after the company went public on $38 a share. After an initial jump, the company's stock held steady at around $38 for the rest of the day. In subsequent days, the bottom fell out, leaving investors hoping for a resurgence. Given today's early showing, that resurgence doesn't appear to be coming anytime soon.

 

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