Facebook has fallen flat and plunges its stakes by 3 billion dollars after company shares fell off following an earnings warning about slow advertising growth.Last year, 59 percent increase was reported in advertising revenues. In the 3rd quarter Facebook tripled its profits, most of its portion goes to its online advertising market. In March 2016,it announced that it has reached three million active advertisers with more than 70 percent from outside the United States.
Facebook shares plunged 5.5 percent after the chief financial officer warned investors that the company expects revenue growth from advertising to "come down meaningfully." Despite Thursday's plunge, Facebook shares are up nearly 15 percent for the year, lifting Zuckerberg's net worth by $6.4 billion. Reports from The Guardian, described that investors were concerned by a comment from the chief officer of Facebook, Dave Wehner that ad revenue growth would slow "meaningfully". The company also said it would push on with "aggressive" investments in hiring technology staff.
It has been a rough week for Facebook with shares dropping 7.5 percent since October 28. Mark Zuckerberg remains in the top 10 riches people in the world, with an estimated value of 52 billion dollars. The internet mogul and his wife Priscilla Chan pledged to invest 3 billion dollars of their fortune in the next 10 years.
Their goals will focus on "advancing human potential and promoting equality". Facebook is an online social media networking service based in Menio Park, California. It was launched on February 4,2004 by Mark Zuckerberg and fellow Harvard college students and roommates. Facebook has more than 1.65 billion monthly active users as of March 31, 2016. As of April 2016, Facebook is the most popular social networking site in the world, based on the number of active user accounts.
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