'Disappointing' Facebook earning results show 'social media bubble has burst'

London, July 28 (ANI): Facebook's disappointing first results as a public company clearly indicate that the 'social media bubble' has burst, technology analysts have claimed.

The firm's shares slumped to a record low after its maiden results as a publicly traded company showed its growth had slowed.

Facebook had been facing pressure to deliver strong results given the almost 30 percent drop in its share price since the 104 billion flotation in May.

According to the Telegraph, Ian Maude, head of Internet at Enders Analysis, described Facebook's first results as the moment which investors finally 'got to see the money and the real state of affairs'.

"This is the proof that there is a social media bubble. Those investors who piled in at 38 dollars were on a hiding to nothing," the paper quoted Maude, as saying.

"Revenue growth even before Facebook's IPO wasn't there to support that valuation. People bought shares at those inflated prices based on the idea that Facebook was the new Google. It isn't," he added.

According to the paper Maude also pointed out that 'Google's display revenues alone this year will be larger than Facebook's entire revenue.'

Having sold shares at 38 dollars each on May 17, Facebook's shares tumbled as much as 12 per cent to 23.75 dollars in extended trading in New York.

David Ebersman, Facebook's chief financial officer, recently said that 'they are disappointed how the stock is trading'. (ANI)