Facebook has warned of heavy investments in 2015 as it steps up efforts to expand a collection of products that include messaging service WhatsApp, photo-sharing service Instagram and virtual reality headset maker Oculus Rift.
As a result, Facebook’s operating expenses rose 83 percent in the first quarter as R&D costs jumped 133 percent and marketing and sales spending nearly doubled.
“The question is, can they keep costs under control and what will be the new revenue streams around video, Instagram and virtual reality around Oculus?” he said.
Facebook’s net income attributable to stockholders fell to $509 million, or 18 cents per share, in the three months ended March 31, from $639 million, or 25 cents per share, a year earlier.
Excluding items, the company earned 42 cents per share.
Facebook said revenue rose to $3.54 billion from $2.50 billion. Revenue from advertising was $3.32 billion, up 46 percent from a year earlier.
Analysts on average had expected a profit of 40 cents per share and revenue of $3.56 billion.