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Facebook’s earnings smashed forecasts, so why did its stock suddenly tumble?

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Brendon Dwelle
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The numbers all looked good for Facebook when it reported its latest set of financial figures on Wednesday.

But its stock value went south.

Revenue climbed, profits soared, user numbers jumped.

But the value of its shares fell when the company warned of slower ad revenue growth next year because it s nearing the limit of how many ads it can show without alienating users, among other factors.

Facebook s latest quarter topped Wall Street expectations, pulling in $7.01 billion in revenue – up from $4.5 billion a year earlier – with 84 percent of that figure generated by mobile ads.

Profits hit $2.4 billion, a significant increase on the $896 million it raked in across the same three-month period in 2015.

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Brendon Dwelle
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