Facebook shares tumble amid slow growth warningsNovember 3, 2016 - 13:08 AMT PanARMENIAN.Net - Facebook Inc (FB.O) shares tumbled 7 percent in after-hours trading on Wednesday, November 2 as the world's largest online social media network warned that revenue growth would slow this quarter, offsetting strong earnings that handily beat Wall Street estimates, Reuters reports. The slip reflected doubts among investors that the company can continue its runaway success, even as it reported strong mobile ad numbers and steady growth in its enormous network, which ticked up to nearly 1.8 billion monthly users in the latest quarter. Facebook reported a greater-than-expected 56 percent rise in quarterly revenue, to $7.01 billion, showing the company is claiming an ever-growing share of the online advertising pie. Google's parent Alphabet Inc (GOOGL.O) last week also announced strong revenue and profit growth, while traditional media companies like the New York Times Co (NYT.N) are struggling to stem ad revenue declines. However, in a call with analysts, Facebook Chief Financial Officer David Wehner said ad growth would likely slow "meaningfully" due to limits on "ad load," or the number of ads that Facebook can put in front of customers without alienating them. He also said 2017 would be a year of aggressive investment with a substantial increase in expenses. "They have reached the limit of the ad frequency on news feed, so they are going to have to find revenue growth from other areas like pricing, user engagement, user base growth," said Josh Olson, an analyst at Edward Jones. However, he said investment in the business should benefit Facebook in the longer term. "We have been down this road before with Facebook, they have invested something like this in mobile and we have seen it pay off. So we are looking at it as an opportunity," said Olson. Facebook shares were down 7 percent in after-hours trading, at $118.21. Photo: Reuters Top stories Authorities said a total of 192 Azerbaijani troops were killed and 511 were wounded during Azerbaijan’s offensive. In 2023, the Azerbaijani government will increase the country’s defense budget by more than 1.1 billion manats ($650 million). The bill, published on Monday, is designed to "eliminate the shortcomings of an unreasonably broad interpretation of the key concept of "compatriot". The earthquake caused a temporary blackout, damaged many buildings and closed a number of rural roads. Partner news | Czech-Armenian military cooperation discussed in Yerevan A delegation led by the Director General for the Industrial Cooperation Division of the Ministry of Defence of the Czech Republic visited Armenia. U.S. welcomes efforts to define Armenia-Azerbaijan border The United States welcomes efforts to define the border between Armenia and Azerbaijan, says Vedant Patel. Biden honors resilience of Armenian people on April 24 U.S. President Joe Biden has issued a statement on the 109th anniversary of the Armenian Genocide. Ex-Karabakh leader moved to solitary confinement cell in Baku, his son says David Vardanyan is the son of former Karabakh leader Ruben Vardanyan who who is currently imprisoned in Azerbaijan. |