The following is an excerpt from DEEPA SEETHARAMAN | November 2, 2016 | WSJ.com |
Facebook Inc. reported Wednesday that its third-quarter profit soared, marking another period of untrammeled growth driven by the social network’s mobile ad products.
But shares of the company tumbled 5.7% to $119.94 after hours as the company signaled that its revenue growth could soon slow. The company said it sees ad revenue growth slowing “meaningfully” in mid-2017 as it will reduce its so-called “ad load,” or the number of ads it shows in a user’s feed.
Facebook is known for its rapid growth, having boosted its revenue by at least 35% year over year every quarter for the past four years, according to FactSet data.
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