Facebook suffers sharp profit drop

<p>Facebook has suffered a sharp drop in profits due to research and development investment.</p>

Facebook has been struggling ever since its arrival on the stock market last year and yesterday (January 30th) the social network giant announced a sharp drop in profits.

The company reported that it made a profit of $64 million (£41 million) in the final quarter of 2012, compared to $302 million a year earlier.

An increase in research and development expenditure has been blamed for this slide and founder Mark Zuckerberg remains optimistic about what lies in store for his brainchild.

Revenues rose by 40 per cent to $1.6 billion – largely due to a large jump in advertising revenue, one-quarter of which came from mobile platforms.

Whenhttp://www.cityindex.co.uk/cfd-trading/http://www.cityindex.co.uk/cfd-trading/ in May 2012, shares in the firm had nearly halved from their initial value of $38 by September.

At close of play on Wall Street last night, shares in Facebook on the technology-heavy Nasdaq rose by 1.4 per cent to $31.24 per unit.

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