Facebook sees US users and stock market value plummet
These are not good times for Facebook. On the stock exchange yesterday it lost $ 9.91 per share, equal to 3.51% of the value. Yet sales were apparently good: $ 28.1 billion versus $ 26.4 billion expected, with a small increase in share value as well.
Why then this decline in the value of the securities? Because these profits no longer come from the area considered the core business of the company, ie USA and Canada.
they are two successive quarters in which facebook users in North America continue to decrease: after a peak at 198 million they first dropped to 196 then to 195. The growth continues now only in the Asia Pacific area, where however possible competitors are many. In addition, the greatest profits were achieved by squeezing the users in North America more.
North American users have been literally stripped, or rather sold in bulk. The original market of FB has transformed into a very mature market, a Cash Cow that marks the maximum profitability, but, in the future, also the beginning of the decline.
Also because there is no particular improvement or update in the FB business model, which instead is punished by political issues as well as by the controversies related to the new WhatsApp policies have hit hard. We add the fact that the “War of the Shorts” has resulted in the liquidation of several positions on the tech greats, and you have an introduction to what may happen to Facebook in the near future.
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The Facebook article sees US users plummet and stock market value comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/facebook-vede-precipitare-utenti-usa-e-valore-di-borsa/ on Thu, 28 Jan 2021 08:12:26 +0000.