Social media giant, Facebook beat Wall Street’s expectations.
But they made an admission that Business Insider says should cause investors to wonder what’s next.
The social media platform is used extensively by manufactured home marketers, along with all others in the housing sector.
“Facebook CEO Mark Zuckerberg has made it his 2018 goal to fix the issues that have plagued the 14-year-old social media giant over the last several months. But those problems don’t appear to have hit Facebook’s balance sheet just yet.
The company on Wednesday reported that it grew its revenue by 47 percent to nearly $13 billion during the fourth quarter,” said Hollywood Reporter.
In a statement, Zuckerberg called 2017 “a strong year for Facebook” but acknowledged that “it was also a hard one.”
Zuckerberg disclosed that changes made last quarter, including cutting back on viral videos, reduced time spent on the platform by “roughly 50 million hours every day.”
That, says Business Insider, is the point of concern.
Here are their bullets on why that matters to investor, which can also be reason for marketers to raise their eyebrows too.
- In its fourth-quarter earnings report Wednesday, Facebook reported a 5% drop in daily usage of its service.
- Company CEO Mark Zuckerberg assured investors that this was actually a good thing, saying the Facebook was focusing on promoting “meaningful interaction” not maximizing the amount of time users spent on the site.
- But the drop follows a host of negative publicity for the company and growing concerns about how its site may be promoting addiction and depression.
- Facebook’s discussion of the decline in usage raised several red flags — among them, that the company plans to make further changes to its service that could reduce usage further.
- How much time users devote to Facebook is a big concern, because advertisers — whose spending comprises nearly all of the company’s revenues — determine where to place their ads in part based on where their target users spend their time.
The Daily Business News has been informing manufactured housing readers about several issues that matter to the industry, and the nation, which included some of the same points that Business Insider has mentioned above.
But additionally, the social media giant has
- had a decidedly pro-left-tilt politically,
- has advocated for policies such as ‘universal income’ which are problematic at best,
- plus Zuckerberg has indicated he has potential aspirations for a 2020 run as a Democrat.
Given their multi-generational influence, and how disruptive they’ve been for social, political, media, and other factors, it’s a trend worth watching.
While Steve Bannon and the White House have been dramatically distanced each from each other since the report above was published, the concerns raised by the article with regards to the issue of “monopoly” are also worth keeping in mind when the subject is Facebook’s influence. ## (News, analysis, and commentary.)
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Submitted by Soheyla Kovach to the Daily Business News for MHProNews.com.
Soheyla is a managing member of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com.