Facebook daily visits growth slows downs
November 9, 2018
By ELEANOR CHAMBESHI,LUSAKA
According to BBC,Facebook's user growth has slowed and revenue has failed to meet forecasts, according to the firm's latest results.
An average of 1.49 billion people used Facebook's social network on a daily basis in September, up 9% on last year but below expectations of 1.51 billion.
Growth remained flat in the US and Canada and fell in Europe.
Facebook said sales rose by 33% in the third quarter to $13.7bn (£10.7bn), however they narrowly missed forecasts.
The Silicon Valley firm - which has been hit by security breaches and concerns about "fake news" - warned investors in July that its previously blockbuster growth would slow.
The company has boosted spending on security and other areas, while allowing users to limit advertising more easily.
Most of its new users live in regions that are less profitable than in the US.
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Facebook said more than 2 billion people use at least one of its apps - which also include WhatsApp and Instagram - every day.
But the newsfeed in its original Facebook network remains the core of its advertising business, even as people increasingly opt for other kinds of activities, like private messages.
Mark Zuckerberg, co-founder and chief executive of Facebook, said he is confident that the firm's ad business will catch up to the shift in behaviour but warned investors to expect 2019 to be another year of "significant investment".
In the third quarter, expenses increased 53% year-on-year to $7.9bn.
Facebook said it expects costs to grow 40% to 50% in 2019.
Profits were $5.1bn, up 9% thanks in part to a lower-than-expected tax rate.
George Salmon, equity analyst at Hargreaves Lansdown said the firm was "doing the right thing by focusing on faster-growing platforms like Instagram, WhatsApp and Messenger".
"The catch is he's sacrificing a lot of profit," he said.
Facebook shares were volatile in after-hours trade, reflecting the mixed results. Since the July warning, Facebook's share price has lost about a third of its value.
By ELEANOR CHAMBESHI,LUSAKA
According to BBC,Facebook's user growth has slowed and revenue has failed to meet forecasts, according to the firm's latest results.
An average of 1.49 billion people used Facebook's social network on a daily basis in September, up 9% on last year but below expectations of 1.51 billion.
Growth remained flat in the US and Canada and fell in Europe.
Facebook said sales rose by 33% in the third quarter to $13.7bn (£10.7bn), however they narrowly missed forecasts.
The Silicon Valley firm - which has been hit by security breaches and concerns about "fake news" - warned investors in July that its previously blockbuster growth would slow.
The company has boosted spending on security and other areas, while allowing users to limit advertising more easily.
Most of its new users live in regions that are less profitable than in the US.
Facebook shares dive as growth disappoints
Facebook security breach: Up to 50m accounts attacked
Facebook said more than 2 billion people use at least one of its apps - which also include WhatsApp and Instagram - every day.
But the newsfeed in its original Facebook network remains the core of its advertising business, even as people increasingly opt for other kinds of activities, like private messages.
Mark Zuckerberg, co-founder and chief executive of Facebook, said he is confident that the firm's ad business will catch up to the shift in behaviour but warned investors to expect 2019 to be another year of "significant investment".
In the third quarter, expenses increased 53% year-on-year to $7.9bn.
Facebook said it expects costs to grow 40% to 50% in 2019.
Profits were $5.1bn, up 9% thanks in part to a lower-than-expected tax rate.
George Salmon, equity analyst at Hargreaves Lansdown said the firm was "doing the right thing by focusing on faster-growing platforms like Instagram, WhatsApp and Messenger".
"The catch is he's sacrificing a lot of profit," he said.
Facebook shares were volatile in after-hours trade, reflecting the mixed results. Since the July warning, Facebook's share price has lost about a third of its value.