Facebook shares soared 15% after the reported increase in quarterly profits, but the stock lost steam after the company admitted young teens are losing interest in the site.
"We did see a decrease in [teenage] daily users [during the quarter], especially younger teens," Facebook chief financial officer David Ebersman said Wednesday, during the company's third-quarter earnings conference call with analysts. He said Facebook usage among overall U.S. teens was "stable," however.
Previously, Facebook had defended itself against multiple recent studies and articles proposing that teens don't find Facebook cool anymore. Last quarter, CEO Mark Zuckerberg said it "just isn't true" that the company has a problem with the teen market.
Facebook stock is still up 123% over the past year.
Source: CNN Money