The Conference Call That Shook Investor Faith in Facebook

www.wsj.com

Here's a fun Deepa Seetharaman that goes minute by minute through the conference call resulting in Facebook's record stock plunge. Here's something that hasn't gotten enough attention yet. (It will though.)

He partly blamed “currency headwinds” and new privacy options for users but also revealed that new ad formats such as those within Instagram Stories weren’t pulling in the same amount of money as ads shown in the Facebook and Instagram feeds.
This revelation about Stories startled many analysts and investors. Facebook executives have said users were embracing the Stories feature, which allows users to post photo and video montages that disappear after 24 hours, and that activity would eclipse time spent just scrolling through feeds next year. Ads shown in feeds are where Facebook generates the bulk of its revenue. Now, Facebook executives were saying that people were spending more time using a less-lucrative product.

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