Facebook stock drops on news of decline in user base
The social network's stock goes down 3.9 percent after investment firm Capstone reported a decline in users over the last six months.
Facebook stock dropped 2.8 percent this morning after an investment firm indicated that the social network's number of users have fallen over the last six months, Bloomberg reported.
The shares of Menlo Park, Calif.-based Facebook decreased 2.8 percent to $27.45 at 10:53 a.m. ET, Bloomberg said, while the shares of Zynga, which has games that are mostly played on Facebook, dropped 6.1 percent to $4.54. Perhaps the panic was short-lived, as the stock ended the day at $28.09, a 0.55 percent decline.
This comes on top of the stock's 8.1 percent decline yesterday.
The Capstone report, written by analyst Rory Maher, revealed that Facebook's user base in the U.S. decreased 1.1 percent over the past six months. Additionally, 14 of the 23 markets where Facebook has been successful saw a decline or little growth over the past three months.
These numbers add to the slew of stats on Facebook's declining member base. ComScore numbers from late June showed a decline of unique U.S. visitors to the site in a three-month period -- from 158.9 million in March to 158.01 million in May. Another analytics company, ForeSee, said user satisfaction also continues to decline.