In the recently released quarter Facebook Inc (NASDAQ:FB) has reveal that it has lost bulk of teen age users, that has raised concern in the company management as well as its investors. As the social networking giant produces a significant segment of its revenue from online advertisers and attract customers through it. The decrease in its users would negatively impact the firm’s upcoming financial results.
As the firm recent earnings result was much impressive in which its revenue increased 60% to $2.02 billion, and declared profits of $425 million. Facebook Inc active user on daily basis has reached 728 million. And the company also reveals considerable number of increase in its active users on daily basis from a handset device was 507 million.
But the decline in teen users may affect the company but it is also worth mentioning that the company in just one year has made a lot of progress. McKinsey & Company, has commented that commercial television has attain its 50 million households in 13 years, while other internet services companies consumed 3 years to achieved 50 millionth subscriber. But Facebook has achieved this goal in just 12 months and Twitter in nine months.
So with this evidence no can ignored the significance of social networking in our lives. Everybody access the world in just through on click. The US social networking company is still making its efforts to attract users throughout the globe, as more and more companies are emerging on b to attract customers such as Twitter and Snapchat. Everybody is accessing the Web to boost their business, especially towards social network to market their products similar to TV and newspaper advertising, so this has increased completion throughout the globe to attract more and more users. Facebook Inc (NASDAQ:FB) shares increased 0.60% to $49.28 in current trading session.