May 3, 2017

Expect Facebook's revenue growth to slow—but not because of 'fake news'

Matt Rourke / AP File Photo

Later today, Facebook will post its earnings for the first quarter of 2017, and expectations are mixed.

Controversies: Facebook's been grappling with the rise of "fake news" and graphic violence on its Facebook Live platform, but the controversies are unlikely to affect the company's ad business. Similarly to Google, whose revenue has been unaffected by advertiser backlash over its programmatic ads ending up on inappropriate videos, Facebook has been actively working to smooth over its image.

The bad news: Facebook's revenue growth is expected to start slowing down. The company warned us last year that it is running out of space in its service to put more adds. To be clear, Facebook's revenue will be greater than a year ago, but the growth will be slower. What's more, it historically sees a big bump in revenue in the fourth quarter, followed by a drop in revenue the following, so expect to see that again.

The better news: Though Facebook doesn't break out Instagram's numbers, the photo-sharing app has had a huge success with its take on Snapchat's Stories feature and is on the upswing. Facebook also has yet to roll out its mid-roll video ads, so it's not fully monetizing its video content yet. When it does, that should help boost its revenue.

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Big video game conference delayed amid coronavirus concerns

Photo: GDC

Next month's Game Developers Conference in San Francisco became the latest tech event to be cancelled or postponed amid growing concerns over the spread of the novel coronavirus.

The big picture: A growing number of events are being scrapped, including Mobile World Congress and Facebook's F8 developer conference. Some, like the giant SXSW event in Austin, insist they are moving forward.