Facebook Spooks Investors By Saying Teens Are Tuning Out

Although Facebook reported quarterly results yesterday that far exceeded many analyst expectations, FB’s 15% spike in after-hours trading quickly retreated after a less-than-promising admission from Facebook chief financial officer David Ebersman. According to Ebersman, teenagers are losing interest in Facebook. “We did see a decrease in teenage daily users during the quarter, especially younger teens,” …   Read More

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Facebook Spooks Investors By Saying Teens Are Tuning OutAlthough Facebook reported quarterly results yesterday that far exceeded many analyst expectations, FB’s 15% spike in after-hours trading quickly retreated after a less-than-promising admission from Facebook chief financial officer David Ebersman.

According to Ebersman, teenagers are losing interest in Facebook.

“We did see a decrease in [teenage] daily users [during the quarter], especially younger teens,” Ebersman said yesterday during a conference call with analysts.

Although he clarified his statement by adding that Facebook usage among most teens remains “stable,” the revelation was not something investors wanted to hear.

Nonetheless, there was still plenty of good news to focus on yesterday.

Facebook’s sales popped 60% over the course of the year to more than $2 billion. Ad revenue helped Facebook generate $1.8 billion in sales for the quarter, and the average price per ad climbed 42% from just one year ago.

As of the end of September, Facebook had 1.2 billion monthly active users, 874 million of which are mobile monthly active users.

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