With advertising revenue up 66 percent, you’d think Facebook (FB) shareholders would be on top of the world. You’d be wrong. Although the social media giant posted remarkable Q3 gains, its share price went yo-yo yesterday, rising 15 percent before suddenly falling to a loss of 3 percent, then ending the day slightly higher. What caused the up and down momentum? The reasons was news that the company wouldn’t be increasing the frequency of its newsfeed ads to increase revenue going forward — now shown at the rate of 1 every 20 newsfeed stories. This situation, combined with the rumor that FB is falling out of favor with younger users, caused the share price to drop. Looking ahead then, the social media giant did report that it would increase advertising rates, but will that be enough to sustain growth? That’s the question in front of investors this morning.
Investors took the Federal Reserve's announcement of its intent to maintain its current easy-money policy as a sign of a weak economy and exited the markets, sending the S&P 500 down for the day and ending its four-session winning streak.
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