Even before Facebook (FB) investors could start celebrating a strong quarter of earnings growth, the company cooled off the party.
During the conference call, the company's Chief Financial Officer David Wehner cautioned Facebook would be ramping up spending by up to 70% in 2015 and gave disappointing revenue guidance for the fourth quarter. That's exactly what investors don't want to hear, especially as they've seen how Amazon.com has fallen into the red by making big investments.
Facebook's caution on how spending might affect future quarters is causing the stock to sell off in afterhours trading. Shares are down 10%. Analysts were expecting Facebook to earn an adjusted $2.04 a share in 2015, up 25% from 2014, says S&P Capital IQ. Revenue was expected to hit $16.6 billion in 2015, up 35% from 2014.