Facebook remains a quickly growing company that sees its revenues increase by over 30% yearly, but the news of decelerating growth was enough to discourage some investors. The earnings report released by the company stated that the management expects the revenue growth to slow down significantly in Q3 and Q4. Facebook CFO, David Wehner commented on the issue, saying:  “Our total revenue growth rates will continue to decelerate in the second half of 2018, and we expect our revenue growth rates to decline by high-single-digit percentages from prior quarters sequentially in both Q3 and Q4.” An analyst at Pivotal Research, Brian Wieser gave his opinion on the future prospects of the Facebook’s revenues: “While the company is still growing at a fast clip, the days of 30%+ growth are numbered.”
There are several reasons for the declining revenue growth rate. The Cambridge Analytica scandal forced the company to be more conscious of its privacy policies and allow users more control over their data. For a company that generates revenue through targeted marketing that is heavily centered on personal data, this could turn out to be a big blow. While the company will continue to offer companies advanced digital marketing functionality, even small drawbacks can become a reason to decelerate the extraordinary revenue growth rates. Scott Kessler, a representative from CFRA Research commented on the issue: “Legal/regulatory developments have led to changes intended to support FB’s platform and users, but they will notably restrain growth and profits for at least the next couple of quarters, in our opinion.”

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