Facebook stocks lower as Instagram loses users

Facebook shares fell after a report said its photo-sharing app Instagram had lost millions of users
The "Facebook" logo is seen on a tablet screen on December 4, 2012 in Paris. Facebook shares fell after a report said its photo-sharing app Instagram had lost millions of users following the release of planned policy changes since dropped on an outcry from users.

Facebook shares fell Friday after a report said its photo-sharing app Instagram had lost millions of users following the release of planned policy changes since dropped on an outcry from users.

According to audience tracker AppData.com, over the past week the number of daily Instagram users fell by 3.5 million to an average of 12.4 million users per day.

shares sank about 2.5 percent lower in early trade, before rebounding to $25.71 in the early afternoon, off 1.2 percent.

Earlier this month, Instagram backed off planned policy changes that appeared to clear the way for the mobile photo sharing service to sell pictures without compensation, amid protests from users.

Changes to the privacy policy and terms of service had included wording that appeared to allow people's pictures to be used by advertisers at Instagram or Facebook worldwide, royalty-free.

and Instagram forums buzzed over the , as users debated whether to delete their accounts before the new rules kicked in.

Facebook acquired Instagram earlier this year. The original price was pegged at $1 billion but the final value was less because of a decline in the social network's .


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(c) 2012 AFP

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Dec 28, 2012
Sad, just goes to show you that you don't need to understand much of anything about REAL economics to strike it rich.

Mark Zuckerberg is a highly skilled idiot.

Going public is the biggest mistake he's made so far, on top of all these other mistakes. If you're in the business of pleasing people (which his primary draw is,) then you better listen to your users.

Anybody who actually bought Facebook stock is also an idiot.

You were warned, and warned again.

Dec 29, 2012
He could have sold it, and lived happy and stress free for all of time. But instead held onto it with the risk that it will all crash down.

Dec 30, 2012
Very few people know what fb actually does with personal data. I will give you a clue, worse than google. Going public was an idiotic move but then again coming from an idiot that is expected. Also idiotic is people buying stock from a company where the CEO can care less about shareholder opinion. Double wammy!

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