Growth in Facebook user numbers slows
san francisco — Facebook has announced plans to adapt to users sharing more privately as the social network pours money into an ongoing battle with “bad actors” out to misuse its service.
Silicon Valley-based Facebook reported that its quarterly profit climbed in the recently ended quarter, but the social network — mired in a spate of controversies — gained fewer users than analysts had expected.
Profit beat Wall Street expectations by jumping nine per cent to $5.14 billion on revenue that leaped 33 per cent to $13.7 billion in the quarter that ended September 30.
Facebook shares went for a rollercoaster ride in after-market trades as executives revealed quarterly earnings figures along with challenges and opportunities seen in shifting trends in user behaviour.
Shares jumped, dove and then rose anew before staying on higher ground, up 3.1 per cent to $150.80, on the Nasdaq early in the evening in New York.
“Right now, the market is really nervous and it doesn’t take much to move the stock,” said analyst Rob Enderle of Enderle Group. “As long as they are meeting or exceeding on the bottom line [profit], they will be fine.”
The number of people who used Facebook monthly rose 10 per cent to 2.27 billion, but analysts had expected that figure to be slightly higher.
“Our community and business continue to grow quickly, and now more than two billion people use at least one of our services every day,” CEO Mark Zuckerberg said in an earnings call, including WhatsApp, Instagram and Messenger in the count. “We’re building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well.”