Facebook usage is on shaky ground as the company loses $35 billion of its value as its newest scandal erupts across its most profitable markets…
Social behemoth Facebook just lost $35 billion if its value yesterday. The bad news keeps piling on the social network. This time, about improper use of its vast personal data treasure trove. This comes on the heels of its child abuse content autocomplete suggestions.
Facebook Usage Down with $35 Billion Loss after 50 Million Users Personal Data Mined
Fresh reports reveal some 50 million users were part of a data mining operation by Cambridge Analytica, a political consultancy group. The social network suspended the company in light of these reports. Multiple investigations are now open as a result.
Although revenues increased by 47 percent last year to reach $41 billion, the social site is suffering in other ways. Aggregate user time-on-site is down by 50 million hours per day. Yet another sign of “context collapse.” That’s really bad as advertisers look heavily to this metric as a measurement of engagement.
Globally, the number of DAUs or daily active users grew 14 percent year-over-year. But, the number of U.S. and Canadian users fell by almost 1 million in the fourth quarter. Meanwhile, European growth slowed significantly. Those regions combined generate approximately 75 percent of the site’s fourth-quarter revenue.
Furthermore, fresh research conducted by eMarketer forecasts the network’s share of U.S. digital ad-market share will decrease over the next two years resulting from slower user growth and ad prices peak.