News Technology Facebook growth rate slumps this quarter

Facebook growth rate slumps this quarter

Facebook had its slowest growth rate in relation to its quarterly revenue in two years, while higher spending on research and development caused a dip in the company’s profits.

According to Reuters, shares of the world's largest Internet social network fell 2 percent in after-market trading on Wednesday.

Facebook has warned of heavy investments in 2015 as it steps up efforts to expand a collection of products that include messaging service WhatsApp, photo-sharing service Instagram and virtual reality headset maker Oculus Rift.

As a result, Facebook's operating expenses rose 83 per cent in the first quarter as R&D costs jumped 133 per cent and marketing and sales spending nearly doubled.

However, Facebook said monthly active users grew 13 per cent over a year ago to 1.44 billion, with 87 per cent of them accessing its service on smartphones and other mobile devices.

Source: Reuters