Facebook's rapid sales growth can be slowing down

Facebook reaches 2 billion monthly users

Facebook may be nearing middle age.

After enjoying a remarkable period of rapidly increasing revenue, Facebook’s sales growth can be finally starting to slow down.

Facebook (FB, Tech30) on Wednesday revealed which its revenue can be currently growing at the slowest pace in nearly two years as the idea brushes up against a ceiling of how many ads the idea can show users.

Facebook posted revenue of $9.3 billion for the June quarter, up 45% through the same period a year earlier. For any some other company, 45% growth could be a phenomenal result, yet not Facebook.

The company enjoyed an impressive all 5 consecutive quarters of sales booming 50% or more thanks to its tremendous success producing money through ads on mobile devices. which streak ended earlier This specific year.

currently the question can be how much more will the idea slow down.

Related: Facebook hits 2 billion monthly users

Facebook’s CFO said in November the company required to see its ad sales growth rate “come down meaningfully” in 2017.

the idea’s not for lack of growth in its audience. Facebook announced hitting two billion monthly users during the quarter, putting the idea miles ahead of social media rivals like Twitter. yet Facebook can be reaching its limit for the number of ads the idea can place in those users’ news feeds.

within the absence of limitless ad sales growth on Facebook proper, the company must currently lean more on its some other favorite products. Those include apps like Instagram, WhatsApp as well as Messenger, two of which have more than a billion users.

Facebook has begun ramping up advertising on Instagram as well as Messenger, yet has yet to disclose sales figures for either product.

On a conference call with analysts Wednesday, Facebook CEO Mark Zuckerberg said he’d like to see the company “move a little faster” in producing money through Messenger in particular.

Investors had been bracing for even more of a slowdown ahead of the earnings report. Facebook stock ticked up 4% in after hours trading Wednesday.

sy88pgw (brand new York) First published July 26, 2017: 4:50 PM ET

Facebook's rapid sales growth can be slowing down

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