Facebook Inc (NASDAQ:FB) Pops Back Up
Facebook Inc (NASDAQ:FB) rises 3% after the loss in the previous day
Facebook Inc (NASDAQ:FB) has been said to have lost the number of users for its social network site. The shares of the Company have fallen 6.87% in the past three days.
In a report issued by analyst at Capstone Investment it had been reported that the user base of the social network site has decreased in the last six months. Users in U.S. had reduced by 1.1% and there had been a very little growth seen in other countries where the penetration of the social network site had not yet reached the average prevailing penetration level for other countries.
Facebook had in its S-1 filing included that the social site’s active user growth rate will decline over time as the size of its active user base increases, and the site achieves higher market penetration rates. Furthermore, it also added that as its active user growth reduces the Company will be able to make its performance more directly related to levels of user engagement in current and new markets.
The Company’s revenue growth has already been a huge concern with the revenue growth in the last few periods showing a decline. Adding to the concern is the fact that Facebook has not yet been able to achieve a steady source of income from the mobile segment.
Shares of Facebook Inc (NASDAQ:FB) is up 3.10% after being down in the last two days making the Company’s trading decline in the trading week only 6.87%.