Facebook May Be Losing Its Cool with Teens
(NEW YORK) -- Facebook stock went on a roller coaster ride Wednesday after quarterly results came in much better than expected.
The social network's shares jumped 15 percent after the company reported a 60 percent increase in third-quarter sales versus a loss a year ago.
But the share price tumbled later after remarks during an earnings call with analysts by Facebook's Chief Financial Officer David Ebersman.
He disclosed that the site is no longer the cool hangout spot for some kids. "We did see a decrease in daily users" among younger teens, he said.
Many teenagers have been moving away from Facebook to Instagram, Pinterest and other newer social sites.
But overall, Facebook is still adding users and has growing revenue from mobile advertising. The company says monthly active users grew to 1.19 billion, from 1.16 billion three months earlier.
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