Bloomberg News

Facebook Falls as Use on Social Site Drops: San Francisco Mover

July 17, 2012

Facebook Falls as Use on Social Site Drops

A Facebook Inc. social media logo and a "like" symbol stand on display during a news conference at the Armani Hotel to announce the opening of a Facebook office in Dubai, United Arab Emirates. Photographer: Duncan Chard/Bloomberg

Facebook Inc. (FB:US), operator of the world’s largest social-network, declined after a report from Capstone Investments said the number of users fell over the past six months.

The shares (FB:US) of Menlo Park, California-based Facebook decreased 0.6 percent to $28.09 at the close in New York, adding to a 8.1 percent slide yesterday. Shares of Zynga Inc. (ZNGA:US), which gets most of its revenue from games played on Facebook, dropped 5.2 percent to $4.58.

U.S. users decreased 1.1 percent over the past six months, Rory Maher, an analyst at Capstone, said in a report today. Of 23 countries where Facebook had at least 50 percent market penetration, growth was little changed or down in 14 nations over the past three months, he said.

“This could be an issue for Facebook growth since we estimate that outside of Southeast Asia and some countries in Latin America, most markets are approaching 50 percent penetration,” Maher said in the report.

To contact the reporter on this story: Lisa Rapaport in New York at

To contact the editor responsible for this story: Tom Giles at

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Companies Mentioned

  • FB
    (Facebook Inc)
    • $79.88 USD
    • 1.48
    • 1.85%
  • ZNGA
    (Zynga Inc)
    • $2.69 USD
    • 0.26
    • 9.46%
Market data is delayed at least 15 minutes.
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