Facebook Falls Most in 9 Months as Blistering Growth Set to Slow
Mark Zuckerberg lost $3 billion on Thursday, more than anyone else on Earth, after executives suggested Facebook Inc. probably won’t be able to keep up with its explosive pace of growth much longer. The sobering comments came on a Wednesday evening earnings call even as the Menlo Park, California-based company reported third-quarter sales increased 56 percent to $7.01 billion. Zuckerberg is the world’s fifth richest person with a $52 billion fortune, according to the Bloomberg Billionaires Index.
News reaching us is that the Radio Biafra Facebook Page with close to 1 million members has been restored. reasons why the group was taken down in the first place and even restored today 4th of November cannot be ascertained as at the time of this reports. IPOB has accused Facebook founder Mark of shutting down the group and the account of some IPOB principal officers because of discussions with the Nigerian president Buhari. however, Biafrans have taken to social media to remind Mark of his mission to keep the world open, connected and free.
Could the huge lost of Facebook in over 9 months be the reason for restoring the Biafra Groups ? a look at the group link https://www.facebook.com/groups/radiobiafralondon/ shows an active facebook group with close to 1million members.
Facebook Inc. shares slumped the most in nine months after executives suggested the company probably won’t be able to keep up with its explosive pace of growth much longer.
The stock dropped as much as 5.5 percent Thursday morning after two sobering comments on its conference call the night before. First, Chief Financial Officer David Wehner said revenue growth rates will come down “meaningfully” next year, because the company won’t keep increasing the percentage of ads that Facebook users see in their news feed. Second, capital expenditures will rise “substantially” in 2017 as the social network works to build data centers and recruit the best engineers, he said.
“As we slow ad load growth, we’re going to have a slowing of revenue as well,” Wehner said. “it’s been one of the key factors in terms of driving growth.”
Menlo Park, California-based Facebook reported third-quarter sales grew 56 percent to $7.01 billion, topping analysts’ average estimate of $6.92 billion. It was the fourth straight quarter of more than 50 percent revenue growth. Facebook generated 84 percent of its advertising sales from mobile phones, unchanged from the prior quarter.
For a wrap of analyst views on Facebook, click here.
Advertising provides more than 97 percent of the social network’s revenue. As the company spends money on new areas like virtual reality and mobile messaging that may not generate revenue for years, its performance is tied to its main advertising business, particularly on mobile phones. Facebook and Alphabet Inc.’s Google, have driven the growth in digital advertising spending, together capturing 68 percent of that revenue in the first half of this year, according to the Interactive Advertising Bureau, a nonprofit industry group.