Facebook Q3, 2016 Reports Revenue $7.01 Billion

1.79 Billion Daily Active Users

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Facebook has reported revenues for its third quarter, 2016, of $7.01 billion, beating estimates, and a 59% increase, year on year. Net income was up to $2.379 billion, up 166% from a year ago.

It also says that the monthly active users reaches 1.79 billion, which is a 16% increase, year on year.

Clearly, a bright performance, but how long can it continue with these performance levels? Some are already thinking ahead and questioning whether it can keep the growth at such a rate. Even Facebook raised the point on its earnings call, reiterating it'll reach capacity on advertising. Guess what, it's share price dropped a little.

Investors, however, didn’t like what they heard on the earnings conference call. After shares fell about 1.7 percent in regular trading, they were dropping more than 9 percent, to about $118 a share, in after-hours trading. Facebook’s shares had risen more than 25 percent over the past year.

One reason for their concern was Chief Financial Officer David Wehner’s reiteration of a point he made in the last quarter: Growth will slow in the second half of this year as Facebook laps the even stronger growth it had in the second half of last year.

Next year, growth could slow for other reasons that may worry investors even more. Facebook’s ad load, the number of ads shown in the news feed where most of them run, is likely to fall by mid-2017 because ads are reaching their limit in tolerance by users. As a result, he said, “we’re going to have slowing revenue as well.”

[siliconangle.com...]

Here's a link to the third quarter results [investor.fb.com...]

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>> how long can it continue with these performance levels?

FANGS stocks (Facebook is an "F") are significantly overpriced and are due for a Y2K / 2007 type correction. As I reported earlier, Facebook did not find a way to make video ads work , [webmasterworld.com...] .

But as long as:

>> that the monthly active users reaches 1.79 billion

they can keep reporting fake billions of users and keep bumping the number up while people believe it. and as long as the banks keeps pumping their stock, it'll keep at those levels.

A market correction to find an actual true , market value for those is likely but hard to predict. Stay away unless really interested in speculating.