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Comment by jedberg | Hacker News Reader

Market isn't happy. 25% drop in after hours trading.

It'll be interesting to see if it recovers tomorrow like Netflix did (which then of course gave most of it back the next day again).

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Income at an all-time high, revenue doubled in the last two years, but shareholders are unhappy? Could somebody please explain this to me?

they expected more growth, and FB projected more costs.

A lot of the stock price was based on expected extreme continued growth. They just explicitly said that the growth is slowing and will slow down more, so they're basically losing all of the priced in growth.

The value perceived by shareholders is only partially related to the current revenues. It is about perceived future value. And shareholders are right to be spooked I think.

Revenues have grown 47% for only 11% in MAU. I don't hold shares in Facebook, but combined with the feedback I hear from friends and family about Facebook becoming increasingly ad-obsessed and devoid of valuable content, that would make me very nervous too.

Lets not forget that Facebook the company is not just Facebook the Website

They also own Instagram, Whatsapp, and a host of other massive online properties

While Facebook dies, Instagram (seems anyway) to be thriving

Now, a bad idea for Instagram would be to couple it tightly to Facebook, so that the demise of one drags down the other. Oh, wait...

It's NOT coupled tightly at all. You don't need an FB account.

Facebook is diversifying into non owned operated 3p apps through audience network.

11% may be the YoY growth in world-wide MAU, but MAU has actually dropped in Europe and remained constant in the US compared to last quarter.

Priced for growth, growth slowed.

Revenue missed expectations (even though it grew in absolute terms), and user growth has slowed down again, and that is making investors nervous.

When almost everyone is on Facebook, user growth just has to slow down -- basic math. User growth becomes meaningless as a metric and revenue per user is what matters then. What did investors expect? Indefinite linear or even exponential user growth?

It's obvious to anyone without a vested interest in Facebook growing forever.

However, much of capitalist society is built on the assumption that growth will never end. Things start falling apart when that assumption inevitably proves wrong.

It hasn't just slowed down. MAU/DAUs in Europe have dropped compared to last quarter, and stayed flat in the US.

Jesus, I thought you must have made a typo, but it actually did drop 25%. That's nuts for a company of that size.

It's after hours where there is little liquidity. The real test will be tomorrow.

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