Tech by the numbers: Facebook shares and California’s budget; Instagram says user numbers up; Intel post-earnings

We’re talking numbers today:

Facebook shares are down about 2 percent to $29.50 as of this post, a few days after it unveiled a new way to search the massive social network. Graph Search has received mixed reviews and sparked cautious expectations, as the Merc’s Brandon Bailey reported. We’ve included this item not to talk about search again, though, but about California’s budget. Gov. Jerry Brown’s aides have cut their estimate by nearly one-third of the revenue the state expects to bring in from Facebook’s initial public offering, according to the Wall Street Journal. The state now expects $1.3 billion instead of $1.9 billion by June 2014, from stock sales by early investors, vesting of restricted stock and the exercise of some stock options.

Shares of the Menlo Park company began trading on the public markets in May at $38, about 20 percent higher than their current trading price.

• Speaking of Facebook, Instagram — which seemed to face a user revolt after it recently changed its terms of service (but quickly backtracked) — has released user numbers. The Facebook-owned photo-sharing service said Thursday that it has 90 million monthly users, and that it has seen growth from December to January. In late December, the New York Post reported that by one measure, Instagram had lost 25 percent of its daily users after the TOS changes appeared to indicate the service would sell user photos to third parties. Instagram and others immediately disputed those numbers, as the Merc’s Biz Break wrote. AllThingsD writes that third-party analytics doesn’t take into account, among other things, the users who don’t connect their Instagram accounts to Facebook. 

• And finally, Intel shares are down more than 7 percent to about $21.10 as of this post, the day after the Santa Clara chip maker, dealing with a slowing PC market, posted a big (revised) dip in profit (end revised) for the fourth quarter (down 27 percent year over year) and for the year (down 15 percent from 2011) but said things are looking up. As the Merc’s Steve Johnson reported, Intel CEO Paul Otellini predicted “renewed growth” from the introduction of new smartphones and tablets with Intel inside this year. The company’s 2013 spending plans as it makes its mobile push seems to be worrying investors.

And remember, Intel’s mobile push has been a long time coming. It was a year ago that GMSV wrote ARM wrestling: Intel finally putting up a fight in mobile, after Intel showed off ultrabooks and mobile products at last year’s Consumer Electronics Show. Today, Intel appears not to have made much progress in mobile, something Bloomberg Businessweek’s Ashlee Vance writes tarnishes Otellini’s otherwise impressive legacy at the company. Otellini is stepping down as CEO in May, the company announced in November. (See Intel surprise: Yet another CEO change at a valley giant.)


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  • Kelly

    Please correct the story on Intel – Intel absolutely did not “post a big loss”. A loss means they lost money. In fact, they posted a 2.5 BILLION profit, in the 4th quarter alone. The fact that this profit was less profit than they made last year does not make it a ‘loss’. Please, use correct terms when reporting financial information.

    • Levi Sumagaysay

      Thanks for pointing that out. It was a careless mistake and I’ve fixed it.