Zuckerberg comments send Facebook shares up

Facebook chief executive Mark Zuckerberg sent Facebook shares up three per cent yesterday, as his first major public appearance soothed investors.

Zuckerberg, speaking at a TechCrunch conference in San Francisco, hinted at new growth areas such as mobile and search, although he quashed rumours Facebook was about to launch a smartphone.

The 28-year-old founder, who has lost billions of dollars on paper since Facebook's market debut, admitted to disappointment about his company's crumbling share price, but argued Wall Street had yet to grasp the full potential of its fledgling mobile business.

Facebook shares have shed around half their value since the company’s IPO in May, and are now trading just under $20.