read it is sort of big flop, but other than the R&D expense, should not really affect the company. I think that is part of recent weakness. I have a hunch their ad revenue this q was big. Why? GM account for one, and yahoo ad revenue came in light. Their earnings last Q were not bad at all, but the market has decided to reset the stock price lower for the funds that missed out. If eps., beats, we get over 30.
It wasn't their earnings that sucked, the market did not like the noise about future earnings and spending on R&D. Still they will look at the earnings before special items and revenue. I think revenue surprises. Google ad revenue ok, but yahoo got hit. I believe FB got a lions share of that move from desktop to mobile ad spend Yahoo lost.
Read a bunch of phone reviews. Two major complaints are is eats up battery fast, and switch to other apps an issue. There is a way to fix that right in the menu but many just appear to uninstall rather than dig for the fix. Zuck needs to address that in a download for the phone if he expects to be home page.
Hope he is learning how to deal with the analysts at the CC too. Think Chambers at CSCO.
The right thing to do is not worry about R&D and eps., grow revenue and those other lines fall in place on their own over time. It is like this, Zuckerberg your earnings were a little light, He says yes and as you see the revenue growth was 38%, and we think we can keep that pace up. We have other initiatives and projects to increase the revenue over the next couple years. Smart CEO's ignore the analysts and sell the good points brushing over weak. Let the analyst think oh yah, out years eps.