Facebook Shares Slump After Results Show Slowing Growth
- Revenue increased 25% to quarterly record; Expenses rose 34%
- Social-media network user gains stagnating in U.S. and Canada
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Facebook Inc.’s growth is slowing, adding pressure to a company facing more-restrictive privacy regulations and continued scrutiny from global lawmakers and antitrust officials.
The world’s biggest social-media company reported record fourth-quarter revenue of $21.1 billion, boosted by ads on Instagram and in video. The 25% increase from the period a year earlier was the slowest-ever quarterly sales growth for Facebook, though it topped analysts’ average estimate of $20.9 billion. Shares fell about 7% in extended trading on the news.