Facebook Posts Solid Growth But Guidance Sends Stock Down

Facebook?s management expects revenue to rise by 40% to 47% annually in the fourth quarter, owing to difficult year-over-year comparisons. This represents a slowdown against near-60% levels seen during the previous two quarters. The management also expects costs to accelerate sharply during the remainder of 2014 and beyond. Though this outlook may seem discouraging on the face of it, we believe by making these heavy investments, Facebook is sowing seeds through which it will derive high growth o...