The era of Facebook’s nonstop growth has long since come to an end. Although the company is far from the point at which it might start to shrink, its growth in the US and Canada and Europe has stopped entirely and appears to occasionally decline. In its 2018 third quarter earnings report out today, the social network confirmed that the number of daily active users in US and Canada has remained flat at 185 million, while the number of European users has slipped from 279 million to 278 million.
Overall, the company continues to grow thanks to international expansion, adding 9 percent year over year to its daily active user base for a total of 1.47 billion people. The total number of month active users grew 10 percent from this time a year ago, to 2.27 billion people. But despite that, and the fact that the company continues to grow its digital advertising business at an astonishing rate, the fear of user falloff and the inevitable ad revenue decline it would instigate has some critics and analysts worried about its future.
Facebook says it grew ad revenues 33 percent year over to year, to $13.73 billion, coming in just under Wall Street analysts’ estimates. Profit was $1.76 a share, well over analyst expectations. The company has done a good enough job warning its investors and the press of this eventual turn of events, leading to tempered Wall Street expectations this quarter after it suffered the biggest ever decline in the history of the American stock market last quarter. So Facebook’s share price has understandably remained steady in after-hours trading as a result.
Users down in Europe, flat in U.S./Canada, the company's most lucrative advertising markets.
— Sarah Frier (@sarahfrier) October 30, 2018
Wall St. so far isn't too alarmed. They knew this was coming. pic.twitter.com/rRJvnhBtuG
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