Facebook shares slide 15% on Q2 loss

Facebook shares have fallen 15% after the company reported a drastic slowdown in revenue growth and failed to reassure investors on its ability to boost advertising growth.

Revealing a second quarter loss of $157m, Facebook said revenue rose 32%, slower than in previous quarters, and payments-related sales were $192m, below analysts' predictions of $199.3m. After signalling a 10% drop in pre-market trading, Facebook shares extended losses in early trading to stand down 15% at 22.7p, 40% below its May IPO price of $38. In its first report as a public company, Facebook said costs relating to the group's recent initial public offering weighed on earnings. Costs near tripled to $1.93bn, largely driven by the cost of share-based compensation and related ta...