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Facebook’s stellar ad growth is slowing down but no one seems to care 

Tomorrow, Facebook reports its first-quarter earnings. Analysts are bullish, predicting earnings per share of $1.12, up 45% from a year ago. And they’re predicting revenues of $7.83 billion, also up 45% year-over-year. But Facebook is facing some headwinds. The company has warned that revenue growth will be down “meaningfully” this year as it reaches ads … Continue reading “Facebook’s stellar ad growth is slowing down but no one seems to care “

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Tomorrow, Facebook reports its first-quarter earnings. Analysts are bullish, predicting earnings per share of $1.12, up 45% from a year ago. And they’re predicting revenues of $7.83 billion, also up 45% year-over-year.

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But Facebook is facing some headwinds. The company has warned that revenue growth will be down “meaningfully” this year as it reaches ads saturation in News Feed. So even as the house that Zuckerberg built is facing questions over how it stops people from displaying violence on Facebook Live and how it can use algorithms to tackle the fake news phenomenon, it also needs to find ways to boost revenues outside ads in the News Feed. Luckily, Instagram and live video appear poised to be the source of that growth, and some are looking to see if they will help Facebook fend off strong competition from Snap.

[Photo credit: Nuno Silva]

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About the author

Daniel Terdiman is a San Francisco-based technology journalist with nearly 20 years of experience. A veteran of CNET and VentureBeat, Daniel has also written for Wired, The New York Times, Time, and many other publications

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