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Business

Facebook expects growth to slow, investors bolt

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Opening sequence

Business

Facebook expects growth to slow, investors bolt

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COMING UP:Facebook expects growth to slow, investors bolt

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Transcript

00:00:02
>> Facebook's stocks sinking roughly 5% Thursday, after the social media giant warned its revenue growth could slow, in what was otherwise a stellar earnings report. So is Facebook a victim of its own success? Reuters Global tech editor Jonathan Weber.>> Well, I think they have a challenge of large numbers which is the company's already so big.
00:00:22
I mean there're only so many people in the world, so that's one issue. I think they've also bet very heavily on video advertising that's starting to show up in the results. It's something Zuckerberg touted in his call today as a big success.>> Facebook's third quarter profit was up over two and a half times what it was a year ago driven mostly by mobile advertising.
00:00:44
And its revenue jumped over 50% exceeding expectations. But another big challenge for Facebook, competition especially in video which it's been betting big on.>> Certainly, that should continue to power the results but at the same time there are a lot of people getting into that arena. So you've got Snapchat, you've got YouTube, you've got many other entities that also see a similar opportunity.
00:01:06
>> Facebook said there were nearly 1.8 billion people using its platform at least once a month, up 16% from the same period last year. And with new competitors popping up every day, Facebook will not only have to keep those users but build on them.