Facebook warns of lower growth, and its shares are sink – Investing.com Spain

By Rishika Sadam and Dustin Volz

(Reuters) – shares of Facebook (NASDAQ:) tumbled more than 6 percent on Wednesday in operations after the close after the company warned that its revenue growth could decelerate, offsetting strong increases in profit that had passed comfortably Wall Street estimates.

In a teleconference with analysts, the chief financial officer of Facebook, Dave Wehner, said the growth of the advertising is likely to slow down “significantly” due to the limits of “loading ads”, the number of ads Facebook can put you in front of your users without moving them away.

Wehner also said that 2017 will be a year of investment and aggressive which will lead to a substantial increase of the expenses.

shares of Facebook were down 6.9 per cent in after-hours trading, to 118,45 usd, after the announcement of the results of the third quarter.

while the warnings about the fourth quarter scared off some investors, the majority of the financial indicators of the company exceeded the estimates of analysts, thanks to the robust growth of advertising on mobile devices.

revenues for mobile advertising accounted for 84 percent of total advertising revenues, which amounted to 6.820 million dollars, which compares with the 78 percent share a year ago.

The company is also reaping the benefits of a strong foray into video, both via Facebook as your photo application Instagram.

Facebook recorded an increase of 55.8 per cent in its quarterly revenue, 7.010 million dollars, surpassing the average of estimates of analysts 6.920 billion, according to Thomson Reuters I/B/E/S.

Excluding items, extraordinary items, the company earned 1,09 dollars per share. On that basis, analysts had expected a profit of 97 cents per share.

Facebook said that around 1.790 million people were using its site on a monthly basis to 30 September, 16 percent more than a year ago.

The solid figures are known after the fight of Facebook the last few months fighting accusations that he withdrew unfairly some of the content of your service, and news in September that the company he overestimated over the years the way in which I calculated the average time that users spent watching video.

But investors seem to trust that Facebook will continue to increase its revenue through an aggressive expansion of advertising on mobile devices and video.

More than 90 percent of users of Facebook access the social network through mobile devices, and the company can boast now of having, on average, 1.090 million daily users in these devices, a 22 percent more than a year ago.

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