Why Facebook’s ‘unstoppable’ growth is unstoppable
Facebook has seen its user base expand rapidly, reaching an estimated 15.5 billion worldwide.
In Canada, it’s at nearly 20 billion, and Facebook is now the dominant social media platform in the country.
As the world gets increasingly connected and social media is a critical component of our daily lives, Facebook has become the preferred platform to connect, say, parents and kids.
And with its ability to monetize advertising and build partnerships with companies, it has the potential to play a bigger role in the future of commerce.
“We have reached the end of the road for us and we have to make the next leap,” said Mark Zuckerberg in a conference call on Friday.
“So we have started to build some things for the future.”
As Facebook continues to grow and monetize its business, some are questioning how long the company can sustain growth and whether its business model can survive.
The company says it has more than doubled revenue since its IPO in 2006, and its share price has doubled every quarter since 2010.
But it’s clear that Facebook has a lot to prove and that it can’t continue to grow at the pace it has.
In a recent earnings report, Facebook admitted that it has struggled to monetise its advertising revenue, which has grown more slowly than the company’s revenue in other segments.
Facebook says it spent $3 billion on ads in 2016, but that’s less than half of the $24 billion it spent on its advertising in 2017.
Facebook also has struggled with its growth in China and elsewhere.
And the company has struggled financially in the past two years as its revenue and profit have declined.
On Thursday, Facebook also reported disappointing quarterly results and said it would be slashing about 5,000 jobs as part of a restructuring effort.
The company is also facing pressure from the U.S. Securities and Exchange Commission and other regulators to change its advertising policies.
It has faced a number of challenges, including the emergence of a new competitor in the space, the rise of social media, and a slowdown in China.
However, Facebook says the challenges are manageable and its growth strategy is strong.
So far, Facebook’s stock has been on a roller coaster ride that has included a number from the IPO, and many investors are now asking whether it’s time for a correction.
Facebook shares were up $4.75, or 3.3 per cent, to $68.85 on the New York Stock Exchange on Friday, as investors awaited the results of an expected review of the company by the SEC.