Facebook shares dive a day after the social media giant warns revenue growth would slow this quarter. Bobbi Rebell reports.
(BVO) – Investors giving Facebook the cold shoulder.
Shares of the social network plunged on Thursday, a day after it warned that revenue growth would slow this quarter. Facebook also said that limits on the number of ads it can put in front of customers, without alienating them is going to slow down advertising growth.
Investors are also wary of Facebook’s aggresive investment plans, and unhappy with growth projections that are lower than the 56 percent growth from this past quarter.
Nevermind that third quarter profit and revenue blew past analyst estimates.
Kevin Kelly of Recon Capital.
KEVIN KELLY, CHIEF INVESTMENT OFFICER, RECON CAPITAL,
And he is not alone. 45 of 49 brokerages have a buy or higher rating on Facebook stock.
The company has paid off for investors. Shares were more than 21 percent since the start of the year ahead of Wednesday’s earnings news.
And new users just keep coming. Facebook says it has about 1.8 billion monthly users, up 16 percent, or 243 million, from a year earlier.