Facebook CEO Mark Zuckerberg was candid during his recent speech during TechCrunch Disrupt. Despite persistent rumors that the company is working on a phone, Zuckerberg flat out denied those reports.

“The phone just doesn’t make any sense,” said Zuckerberg. “[Hardware] doesn’t move the needle for us.”

The elephant in the room was the fact that Facebook’s stock has lost half its value from an opening day price of $38 a share to a closing price of $19.43 on Tuesday. “The performance of the stock has obviously been disappointing,” said Zuckerberg.

He said that there’s been some internal restructuring to focus on product groups. “Over the coming weeks and months I think we can expect to see the cool stuff that people have been working on,” he said.

One of the first new projects of late was a more efficient iPhone app. “It was not where we wanted it to be before,” he said of the app. “And to be honest, even what we have now is not as good as it can be.”

One major issue he brought up was search, and implied that Facebook might be making a push into that very soon. “We do on the order of a billion queries a day already, and we’re basically not even trying,” said Zuckerberg. “That’s one kind of obvious thing that would be interesting for us to do in the future.”

Source: CNN.com