The soul of wit
26 July 2016 12:17 (South Africa)
Wired World

Facebook shares slide as user growth in question

  • Reuters
    reuters_twitter_avatar_normal
    Reuters

    Thomson Reuters is the world's leading source of intelligent informatiom for businesses and professionals. It combines industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare, science and media markets.

  • Wired World
C:\fakepath\facebook

Shares of Facebook Inc fell about 1 percent on Tuesday, extending the previous day's losses after an investment analyst reported a decline in U.S. users for the No. 1 social network.

Capstone analyst Rory Maher said he used proprietary software to track user numbers by country over the past six months across more than 200 countries and worked out that the social network had shed users in both the United States and Europe. U.S. users declined by 1.1 percent, he said in a research note.

Of the 23 countries where Facebook's penetration exceeded 50 percent, only nine expanded their user base over the past three months, while the remaining 14 countries either had fewer users or saw little change.

Facebook representatives did not immediately respond to requests for comment.

Facebook, which last reported more than 900 million users, has undergone phenomenal growth since its 2004 inception, culminating in a record May initial public offering that valued the company at more than $100 billion.

But the stock has since lost a third of its value. On Tuesday, it slid as low as $27.15, after falling by more than 8 percent on Monday. DM

Photo: A man walks past a sign welcoming Facebook to the NASDAQ Marketsite in New York May 18, 2012. REUTERS/Brendan McDermid

  • Reuters
    reuters_twitter_avatar_normal
    Reuters

    Thomson Reuters is the world's leading source of intelligent informatiom for businesses and professionals. It combines industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare, science and media markets.

  • Wired World

Get overnight news and latest Daily Maverick articles

Do Not Miss

Daily Maverick has temporarily suspended comments on the site. Until the interwebs figures out a better way to deal with the naughty kids in the class, the space for your comments is on our Facebook page and the Twitterverse.

Alternatively, you are welcome to send a letter to the editor.