Facebook slumps as mobile ad growth fails to impress

PALO ALTO, Calif., Thu Jan 31, 2013 — Shares of Facebook Inc. were set to open 7 percent lower on Thursday as a surge in fourth-quarter mobile advertising revenue failed to live up to Wall Street’s high expectations.

Three brokerages downgraded the stock of the No. 1 social network, which has struggled to develop a full-fledged mobile advertising business.

Facebook has long established itself as one of the most important websites, but investors have worried that until the company’s mobile advertising strategy takes off, revenue growth will remain shaky.

The company reported a better-than-expected fourth-quarter profit on Wednesday and said its mobile advertising revenue doubled to $306 million, suggesting it was making inroads into handheld devices such as smartphones and tablets.

Investors were looking for at least $350 million in mobile advertising revenue, Piper Jaffray analyst Gene Munster said in a note to clients.

“While the trajectory of mobile growth may not be as steep as some investors were hoping, the theme of mobile as the future of Facebook remains intact,” he said.

Occidental Petroleum’s profit slumps on $1.1 billion charge

LOS ANGELES, Thu Jan 31, 2013 — Occidental Petroleum Corp., the fourth-largest U.S. oil company, reported a 79 percent drop in quarterly profit on Thursday as it wrote down the value of certain gas properties by $1.1 billion.

The company’s net profit fell to $336 million, or 45 cents per share, in the fourth quarter from $1.6 billion, or $2.02 per share, a year earlier.

Revenue rose 2 percent to $6.17 billion.

The charges were mainly related to gas assets in the Midcontinent, the company said.