Facebook announced yesterday the first drop in the number of active users within the social network, the company taking everyone by surprise, especially investors who were expecting something else. For the first time in the history of Facebook, the American company announced a decrease in the number of monthly active users within the social network, this being registered in the USA and Canada, the network having 1 million less active people daily.
The president of Facebook, Mark Zuckerberg, stated that this decrease in the number of active users in the network was something the company wanted, making a series of changes to bring about this change. Based on this decrease, 50 million hours less were spent on Facebook every day, the figure being a huge one, worrying investors, but everything is a "smoke screen", because the company's revenues increased anyway in Q4 2017.
Facebook Registers the First Decline in the Number of Active Users
Facebook now has 2.13 billion monthly active users on the network, 14% more than in Q3 2017, but the number of daily active users added to the total compared to Q3 2017 was only 32 million people, the smallest increase in the last 2 years. Basically, Facebook has attracted new users to its network, but few of them remain active daily, a sign that it is very possible that many of the accounts are fake, their total number being huge.
Although Facebook lost daily active users, the revenue generated per user increased extremely, from $7.55 in Q3 2017 to $9.27 in Q4 2017, $2 more than in Q4 2017. Basically, Facebook shows that it can it squeezes more money from its advertisers, although the number of people active in the network decreases, a sign that as this decline happens, the promotion costs increase, so Facebook does not lose money directly, but only on the stock market.
