Pioneer of the social networking phenomenon is facing slowdown in its growth pace for the first time and stated in its latest results that it has also missed forecast records. While an average of 1.49 billion people used Facebook’s platform on a daily basis during September showing a growth of 9% over last year, it was still short of expectations that was set at 1.51 billion. The social networking platform witnessed flat growth across United States and Canada while in Europe its growth fell. Facebook declared that its sales rose by 33percent to $13.7 billion during third quarter but it fell short of expectations and was less than last quarter’s gain of 42 percent.
Facebook also owns messaging platforms like Instagram and WhatsApp which are grappling with shift in its business profits as user growth has slowed in its most profitable markets. According to experts Facebook’s growth in developed markets is stalling as social networking activity is now shifting to making social stories and sharing it via private messages. Facebook has not yet monetized that feature into advertising as its newsfeed channel. Facebook’s co-founder Mark Zuckerberg has announced that he is confident about the firm’s advertising sales division catching up with shifting changes in user behavior.
He warned investors that it may take at least another year for advertising revenue to start coming in for which significant investment has to be made. The firm’s reputation in past one year has taken a lot of public bashing due to concerns about “fake news” during presidential elections and data breaches that led to some users shifting focus to other platforms. The firm also had to increase expenditure to maintain data security and privacy and its YoY expenses have increased by 53 percent to $7.8 billion. During its last quarter ending September its highest growth sectors were India, Philippines and Indonesia