When Facebook told Wall Street in July that its business would slow down, it had few answers for how it planned to change that trajectory.
On Tuesday, the social network came back with some responses.
The Silicon Valley company predicted that the next few years would be tough, but said Facebook was looking to a future where it would move beyond News Feed, the stream of content that is the core of the platform. The social network said it would instead focus more on different mediums like ephemeral messaging, private chats and video — even though none of those make as much money as the News Feed does.
Facebook revenue rises less than expected as user growth stagnates
Facebook saw revenues jump in the third quarter, but is struggling to grow the number of its users in the United States and Europe — a sign that the social media giant has suffered a toll from its recent controversies over privacy.
Revenues were $13.7 billion in the quarter, about 33 percent higher than the same period last year, but about $40 million shy of analysts' expectations. Profit increased 9 percent to $5.1 billion. The mixed numbers sent Facebook’s stock price zig-zagging in after-market trading on Tuesday. It has fallen more than 30 percent since July.
Facebook expects rising costs to combat scandals to moderate after 2019
Facebook Inc on Tuesday relieved investors by forecasting that margins would stop shrinking after 2019 as costs from scandals ease up, sending shares up despite a second-straight quarter with record-low user growth.