toggle

AAPL Stock: 112.9 ( -0.4 )

Printed from http://www.macnn.com

User decline report causes Facebook stock slide

updated 08:14 pm EDT, Tue July 17, 2012

Growth little changed or down in 14 nations

Shares of Facebook fell slightly today as a report emerged suggesting that user engagement with the social network was leveling off or falling. Bloomberg reports that a report from Capstone Investments saw troubling growth numbers for the social network in 14 nations over the last quarter. Previous reports have claimed that user interest in the site was waning, though growth may still be strong in other areas.

Facebook stock dropped 0.6 percent today, closing at $28.09. Yesterday, shares in the company dropped 8.1 percent. Today's decline came on the news that the number of US-based Facebook users had dropped 1.1 percent over the last six months. Capstone's report also said that in 23 countries where Facebook had at least 50 percent market penetration, 14 of those countries had seen little or negative change over the past quarter.

The news could spell trouble for the world's largest social network, as it is approaching 50 percent penetration in most areas outside of Southeast Asia and Latin America. Capstone's report is in keeping with findings from a Reuters/Ipsos poll last month that a third of those surveyed were using the site less frequently than they had six months ago. More troubling for Facebook, though, could be that while the vast majority of its users still use the site, only a small fraction are ever interacting with the advertising that makes up for much of Facebook's revenues.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented