Facebook shares fell sharply in after hours trading, after its fourth quarter results revealed a drop in daily user growth.
Facebook now has 1.4 billion daily users, up 2.18 percent. This compares to the 3.8 percent growth to 1.37 billion users in the previous quarter.
The site did record a growth in monthly active users, however, which increased by 14 percent to hit 2.13 billion.
Facebook recorded a record profit for the quarter, hitting $4.26 billion, and its income from mobile advertising increased to 89 percent from 84 percent in the fourth quarter of 2016.
CEO Mark Zuckerberg said user growth fell due to changes made to how Facebook shows viral videos, which “reduced time spent on Facebook by roughly 50 million hours every day.”
“2017 was a strong year for Facebook, but it was also a hard one,” Zuckerberg said.
“In 2018, we’re focused on making sure Facebook isn’t just fun to use, but also good for people’s well-being and for society. We’re doing this by encouraging meaningful connections between people rather than passive consumption of content.
“Already last quarter, we made changes to show fewer viral videos to make sure people’s time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day. By focusing on meaningful connections, our community and business will be stronger over the long term.”
