Last week both Facebook and Twitter released Q2 results and while Facebook was flying high, Twitter was stalled and got punished by investors looking for more.
The largest social network surpassed 2 billion monthly active users (MAUs) in Q2. Two billion is a gigantic number but usage in North America is pretty saturated with growth of only two million from the previous quarter (10 million y-o-y). The daily active users (DAUs) also continue to climb to 1.325 billion as more people get used to sharing on the platform:
The DAU numbers for the different Facebook platforms are (in billions):
- Facebook: 1.325B
- Messenger: 1.2B
- WhatsApp: 1.0B
- Instagram: 0.7B MAU (DAU wasn’t reported)
Revenue growth is slowing, mainly because there simply isn’t room to put more ads (without damaging user loyalty -Ed.) but the company also has Messenger, Instagram, and WhatsApp so there are still opportunities for some growth.
Investors liked this news and the stock surged. Check out the latest prices on Google Finance.
Poor Twitter. It actually lost users in the US in Q2 (but still had y-o-y growth) and revenue fell 14% y-o-y so unsurprisingly the stock was hammered.
This last quarter really makes the point that social connections in the walled garden are simply more valuable than more news-and-link focused posts on a public platform.