SOCIAL Media – Facebook Inc (NASDAQ: FB) Shares Plunge 7 Pct. Despite Strong Ad Sales

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SOCIAL Media – Facebook Inc (NASDAQ: FB) Shares Plunge 7 Pct. Despite Strong Ad Sales

Facebook proved that even with more than a billion users, the company can still make huge growth. But one of the major factors of its massive rise will ease off in 2017, an executive disclosed.

Increasing the volume of its online advertising has been among Facebook’s 3 key elements in attaining growth, on top of user growth and increasing time allocated on the platform, the social meida giant’s chief financial officer David Wehner bared yesterday.

The CFO stressed that the current company load in advertising could “come down dramatically” after middle of next year, echoing a statement he made during the previous quarter, while adding that revenue growth could fall in Q4.

Facebook Inc (NASDAQ: FB) is the second biggest advertising publisher in the world, just next to Google, based on projections by eMarketer.

“We see revenue growth rates to drop as we hurdle strong quarters,” Wehner disclosed in a meeting with investors. He added that Facebook Inc would be hiring aggressively and investing in data center expansion, even as the company hit a limit on how many ads it can show on its assets.

Facebook Inc has also disclosed that it would modify its tax approach to its personnel equity awards next year — a system that would have hiked cash outflows by around $1.9 billion thru September if it had been used this year. “All investments in new advertising products will continue to stimulate more ad appeal,” Wehner said.

Meanwhile, Facebook Inc (NASDAQ; FB) released quarterly earnings and revenue that exceeded analyst estimates yesterday, as the company added more users than Wall Street had projected.

Facebook Inc reported adjusted earnings of $1.09 a share on $7.01 billion sales, an increase from the comparable year-ago figures of 57 cents a share, adjusted, on $4.5 billion in sales. Analysts had estimated earnings of 97 cents a share, adjusted, on $6.93 billion, based on a Thomson Reuters consensus expectation.

About Chris Miranda

Chris writes mostly about the latest in the stock market, finance, tech and business.

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