Facebook’s Massive Network Hits Milestone in Active Daily Users

Facebook surpassed 2 billion daily active users, a testament to the power of network effects.

As more people joined Facebook, the network became more valuable, attracting even more users and creating a virtuous cycle that drove the company’s growth.

Facebook’s ability to constantly reinvent itself has helped it maintain its position as the premier social media platform for consumers and its advertiser partners.

This recent quarter showed the following user and engagement metrics.

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Daily Active Users: 2 Billion

Monthly Active Users: 2.96 Billion

Family of Apps Daily Actives: 2.96 Billion

Family of Apps Monthly Actives: 3.74 Billion

Potential Investment Implications

From an investment perspective there are many clear takeaways.

First is the power of network effects. Large marketplaces or networks can maintain growth and competitiveness for many years despite the cyclical nature of human interests. Ebay is an excellent example of a legacy marketplace that continues to hold its own.

The second is around reinvention. In my firm’s investment portfolio we have two pillars. The first is secular growth areas such as automation and the shift to digital. The second pillar is transformation stories, where companies seek to realign their business to where the world is headed.

The data today shows how a 19-year-old company can continue to thrive on top of healthy and growing network effects that have been powered by reinventing the product over and over.

Twitter:  @_SeanDavid

The author or his firm have positions in the mentioned companies and underlying securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.