London, July 23 (ANI): Social networking giant Facebook is likely to post losses when it declares its first quarterly earnings this week, according to a report.
Since the firm's Initial Public Offering (IPO) on May 18 this year, its shares have fallen in value and closed Friday at 28.76 dollars, almost 10 dollars below their initial price.
According to The Daily Mail, market analysts are awaiting Thursday's declaration with interest to see how investors feel about the stock since a most disappointing start.
The company's shares have repeatedly lost ground after investors questioned the firm's ability to rapidly increase its advertising revenue, particularly in relation to revenue from mobile phones.
Technical glitches with its market debut on Nasdaq were also blamed for a disappointing start after the initial fanfare.
Facebook became the first U.S. firm to ever go public with a valuation of over 100 billion dollars.
Meanwhile, Michael Binger, a fund manager for Gradient Investments, which owns stock in Facebook, pointed out that the real test is yet to come for the company.
"If they miss, it would be catastrophic for the stock. This is a very important earnings quarter for them," the paper quoted Bunger, as saying.
"It will establish in people's minds how they think of the company," he added. (ANI)