Wednesday, November 2, 2016

Facebook warns of growth decrease.


Facebook, which submitted its interim report yesterday, warning that growth will slow in the current quarter. The ceiling begins to be reached on how much the ads users will tolerate.

Investors made a thumbs down in spite of a strong report. Facebook’s share plummeted by seven per cent. Arkivbild.Image: Susanne Lindholm

Investors showed hesitation as to whether the IT giant’s framtidssaga can continue, in spite of a strong report, in which profits rose by 166 per cent and its turnover grew by 56 percent in the latest quarter.

Shares dived seven per cent in the efterhandeln, after that Facebook will present its interim report. When included still report strong news, and the company överpresenterade in relation to analysts ‘ expectations.

But the u.s. company’s cfo David Wehner said that Facebook will not be able to continue to increase the number of ads, after which there is a risk that users then shut themselves off from the social media. In addition, will 2017 be a year of aggressive investment, which increases costs.

– Facebook has reached the ceiling for annonsfrekvensen in the flow, so the company must find other ways to increase revenues from other areas such as pricing, active user involvement, or that the user base is growing, ” says Josh Olson, an analyst at Edward Jones.

the Facts: Facebook’s interim report

Facebook profit increased by 166 per cent and its turnover grew by 56 percent in the latest quarter.

Mobiltelefonannonser accounted for 84 per cent of the company’s total advertising revenue of 6.8 billion dollars (of 60.7 billion). Analysts had spått slightly lower income: 6.7 billion u.s. dollars.

Facebook’s profit rose in the third quarter to us $ 2.4 billion (21,1 billion), compared with 891 million dollars in the same period of the previous year. Earnings per share rose from 31 to 82 cents.


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