Description:  Facebook Inc. (FB) reported a plunge in fourth-quarter profit on higher spending, even while it made long-awaited progress luring advertisers eager to reach mobile- device users.

Source: Bloomberg.com – video report

Date: Jan 31, 2013

Link: http://www.bloomberg.com/news/2013-01-30/facebook-profit-drops-amid-higher-spending-on-features-ad-tools.html

Questions for Discussions:

• Summarize the financial analysis presented in this report for Facebook.
• Explain the reasoning for the increase in expenses and subsequent drop in profitability.
• Do you believe the spending will eventually prove to be successful?
• Would you be a buyer of the company today?