Facebook has its share price high and flying as it has increased by 15 percent just hours after trading, that’s just about the good news, but the down side is that is has lost all those gains in the evening as the company admitted that it has seen a decline in use by teenagers.
The social network company said that in its third-quarter revenues jumped by 60 percent to just over $2 billion, while net profit rose to $425 million, as compared to a loss of $59 million a year ago.
Mobile advertising revenue was about 49 percent of advertising revenue for the third quarter of this year.
Costs and expenses for the third quarter of 2013 were $1.28 billion, an increase of 45 percent from the third quarter of last year mainly caused by infrastructure expense and increased headcount.
By September, Facebook’s daily active users increased by a quarter to 728 million users, and it saw 507 million users accessing its service from mobile phones.
Even with all this increment in users the company CFO David Ebersman said that Facebook had experienced a small reduction in the use by teenagers.
With a significant decline in the users, the company is still ‘wowed’ investors on how it remains the ‘it’ social network company yet others collapse once a few teenagers have their attention channeled somewhere else.