Facebook profits plunge despite soaring revenues, did this company’s fortunes peak in its IPO?

Investors who bought into the hype of the Facebook IPO have learnt a painful lesson. But the company itself always looked viable. Now Facebook has soaring revenues but declining profits. Is this a temporary development phase or a sign of a deeper malaise in this business model?

Tech companies can go from industry star to industry flop in years. That is what makes them a very tricky long-term investment. ArabianMoney warned that ‘only a moron’ would buy the IPO and got that very right. Bloomberg News’ Brian Womack discusses Facebook’s latest earnings…