Facebook shares slump as user growth slows

Facebook shares slump as user growth slows

Facebook shares slump as user growth slows

The quarter was also marked by Europe's implementation of strict new data laws, which Facebook said led to fewer daily visitors in that region.

Before the results were announced, Facebook's shares had closed in NY at $217.50, a record high, and had gained 23% this year.

Still, the results suggest that Facebook may have weathered the scandal without major harm to its business, even if its public image has taken a hit.

There's a scratch in Facebook's Teflon coating as the social networking company loses approximately US$150 billion ($219b) in market capitalisation in under two hours, Reuters has reported. In addition, Facebook said its daily active users rose 11 percent from a year earlier to 1.47 billion, compared with 13 percent growth in the previous quarter.

"This [Instagram] has been a story of great innovation and product execution", praised Zuckerberg, who added that Facebook's sprawling infrastructure enabled Instagram to scale twice as fast to where it is now with 1 billion monthly active users.

Expenses are expected to grow 50 per cent to 60 per cent compared with past year as the company invests in security, marketing and content acquisition, he said.

Shares in Facebook, which have risen about 23 per cent this year, fell 8.6 per cent to $198.71 in trading after the bell as investors reacted to the results.

Nearly all of Facebook's revenue - $13 billion of the total $13.2 billion - came from online advertising, a sector dominated by the California social network along with Silicon Valley rival Google.

Zuckerberg warned in late 2017 that the company was investing so heavily in security and safety it could harm the business short-term, and the negative market reaction illustrates the competing pressures the 34-year-old CEO has been forced to contend with.

Demi Lovato's famous friends are sharing support for her on Twitter
Joe is not the only Jonas brother showing Demi some love. "I lived fast and I was going to die young", Lovato told the magazine. Demi has also spoken out in the past about her battles with bulimia, bipolar disorder and addiction.

CNN obtains secret Trump-Cohen tape
On Saturday, Trump tweeted that it was "inconceivable that a lawyer would tape a client - totally unheard of & perhaps illegal". It did, however, give the president a break from news about the Helsinki summit with Vladimir Putin.

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In the conference call following the report, analysts seem to struggle to come to grips with what CFO David Wehner was telling them.

For almost two years, Facebook has appeared bulletproof despite a series of scandals about the misuse of its giant social network.

All of those problems are hitting amid a harsh truth for the company: Facebook, the social network with 2.23 billion active monthly users, can't grow forever.

"The core Facebook platform is declining", said Brian Wieser, an analyst at Pivotal Research Group.

Facebook said mobile made up 91 per cent of ad revenue in the recent period, compared with about 87 per cent a year earlier.

Other factors have also hurt Facebook's number of users, Zuckerberg said, including tough European rules that went into effect in May to protect people's online data. "This is a clear inflection point for Zuckerberg & Co.as the company's advertising fortress and MAU metrics still look "well intact" despite the massive potential headwinds caused by Cambridge and the overall privacy worries (GDPR) in Europe although challenges remain".

One bright spot for Facebook has been Instagram, the photo-sharing app it bought for $1 billion in 2012.

He cited currency fluctuations and a shift in usage to features where Facebook shows less advertising or charges less due to lower demand. The company's head count has already risen 47 percent since a year ago, to 30,275.

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