Facebook exceeded estimates for its performance in the fourth quarter of 2019 but its profits have slowed substantially from a year ago…
Facebook remains at the top of the social media market, hitting 2.5 billion users worldwide during the fourth quarter of last year. But, its stock price fell due to its slowing profits.
Facebook Hits 2.5 Billion Users in Q4 2019
Facebook now has 2.5 billion users across the globe, as of Q4 2019. That represents an increase of 2 percent over Q3 2019, or 1.65 percent.
However, the bigger news on the markets was its slowed profit pace. The company raked in $21.08 billion in revenue, up 25 percent year-over-year. But, net income came in at $7.3 billion, a 7 percent rise, year-over-year.
While still impressive, it’s strongly tempered by the fact it’s way off from the same period last year. At that time, it grew by a massive 61 percent. All of this has happened, as fewer and fewer people log onto the desktop site — as well as the mobile app — less and less.
Instead, people are on Facebook Messenger, Instagram, or WhatsApp much more by comparison. Those subsidiary platforms are where the real user activity resides.
Facebook states there are now 2.26 billion users that open either Facebook, Messenger, Instagram, or WhatsApp each day, up from 2.2 billion last quarter. The company has also unveiled a new metric, Family Average Revenue Per Person, which portends the future.
— Josh Constine (@JoshConstine) January 29, 2020