Facebook users now number one billion

NEW YORK: Facebook said on Thursday it now had more than a billion users, giving the world’s biggest social network a major milestone despite a disastrous stock market introduction.

Co-founder and chief executive Mark Zuckerberg made the announcement, saying the number is “humbling.” “This morning, there are more than one billion people using Facebook actively each month,” he said in a statement. “If you’re reading this: thank you for giving me and my little team the honour of serving you. Helping a billion people connect is amazing, humbling and by far the thing I am most proud of in my life.” Interviewed on the NBC Today show, he called the number a major achievement.

“To be able to come into work every day and build things that help a billion people stay connected with the people they care about every month, that’s just unbelievable,” Zuckerberg said.

Facebook said it reached one billion monthly active users on Sept 14 at 1945 GMT. That includes 600 million mobile users.

In its last update in June, Facebook said it had 955 million users including 543 million using mobile devices.

The California company launched a hotly anticipated public offering in May, but has seen its share price tumble amid concerns that it may not be able to grow revenues as users migrate to mobile devices.

Facebook shares, which hit the market at $38 in May, rose 1.2 per cent early on Thursday to $22.06, having fallen by more than half.

In the NBC interview, Zuckerberg said the company was moving forward despite some rough patches.

“Things go in cycles. We’re obviously in a tough cycle now and that doesn’t help morale, but at the same time, you know, people here are focused on the things that they’re building,” he said.

“I mean, you get to build things here that touch a billion people, which is just not something that you can say at almost anywhere else, so I think that’s really the thing that motivates people.” Analysts are divided on whether Facebook can leverage its massive user base for advertising and other revenues and still remain loyal to Zuckerberg’s goal of making it a service to connect the world.

Trip Chowdhry at Global Equities Research remains bearish on Facebook, saying the company has failed to come up with a credible expansion plan. “OK, one billion users, now what? How do you monetise them?” Chowdhry said. “The problems with Facebook remain the same.” But Lou Kerner of the Social Internet Fund says the market is underestimating Facebook’s ability to drive revenues higher.