Facebook shares drop after news of their user base reportedly dropping

Facebook users base dropping, shares react and decline also.

@anthony256
Published Wed, Jul 18 2012 11:25 PM CDT   |   Updated Tue, Nov 3 2020 12:27 PM CST

Facebook shares were trading above $30 for a few weeks, but they dropped earlier this week, where they closed on Tuesday afternoon at a month-low of just $28.09. Facebook stock dropped 0.55-percent on Tuesday, after a huge 8.6-percent fall the day before.

Facebook shares drop after news of their user base reportedly dropping | TweakTown.com

Zynga shares were also hit, as the company is closely tied into the success of the Facebook platform, where they saw a drop of 5-percent on Tuesday, closing at a year-low of $4.58. The cause of these drops come after Capstone analyst Rory Maher released a report claiming Facebook's U.S. user base declined 1.1-percent over the last six months, as well as the European Facebook user base experiencing decline.

But, with 900 million monthly active users, Facebook can't see continuous growth - there will be stages of stagnation in their user growth, and maybe we're seeing the early signs of this. Looking into the future, Facebook's areas of growth seem to be international. Japan, Russia and China are their next markets to concentrate on.

NEWS SOURCE:allthingsd.com

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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