Facebook has reported a massive 60% increase in revenue in the third quarter, demonstrating that they have finally figured out how to generate large amounts of revenue from their mobile site. But, as investors celebrated, the companies recent success, the news that Facebook was losing its younger users, halted the celebration.

In one year, Facebook’s revenue surged to $1.8bn, a massive 66% increase. Most notably, nearly half of that revenue comes from mobile users and advertisements. Even though many digital companies have suffered due to shrinking profits from mobile advertisements, Facebook has been able to increase their profit margin by increasing the number of ads per mobile user. They have also made their ads more relevant to its users as they were criticized for showing irrelevant ads which led to low conversion rates. By having ads directed to each user and posting them directly in the news feed rather than the side margins, conversion rates have increased.

The Globe and Mail article: http://www.theglobeandmail.com/report-on-business/facebook-third-quarter-revenue-jumps-60-per-cent/article15164098/

Unfortunately for Facebook, its popularity among younger users in Canada and the U.S has decreased. This is a big blow to the company as each user in these countries earn roughly $4.20 compared to $0.74 in high growth countries such as China.

BBC article: http://www.bbc.co.uk/news/business-24751441

Facebook’s stock: https://www.google.ca/finance?q=fb&ei=2a1yUujIFIGqiAKo7wE