Facebook has experienced its slowest period of growth in the second quarter of 2018. Its monthly users were up around 1.5%, creating an uncomfortable feeling on Wall Street, as Facebook growth has been sitting at around the 3% mark for years.
While journalists have been quick to blame controversy and in some cases, a slowing of Facebook’s “cool factor,” there are more significant factors at play.
Much more significant.
You see, while growth has slowed, monthly users are now sitting at 2.23 billion. That’s the number of people that use Facebook on a monthly basis.
The current population of earth is around 7.4 billion people, and it is estimated that 3.2 billion of those humans have access to the Internet. In other words, out of a total target market of 3.2 billion people, Facebook is only a billion short.
For the first time in our history, the total human population is a relevant measure for a publicly listed company and needs to be used as part of the benchmark measurements for growth. After all, what happens if Facebook reaches complete saturation of Internet-connected humans on earth? Is Wall Street still going to use growth as the only metric for the company’s relevancy?
Importantly, Facebook’s financial figures are phenomenal, with revenue sitting at $13.23 billion, which equates to a $1.74 EPS, up on predictions.
So what happens as Facebook grows? The issue of social media companies listing was always a tricky one, but with Facebook being the only company of its kind – potentially apart from Google – does an entirely new sector with additional measurements more focused on the number of user engagements per month need to be created? Perhaps it’s not enough for someone to log into Facebook, maybe they need to engage at a more meaningful level.
Even as Internet users increase, it seems obvious based on the numbers that Facebook will continue to grow with them. How Wall Street chooses to handle a company that can be impacted by the population of the planet remains to be seen.