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Kind of off topic but: At what point can a companies growth slow down without it being a concern? For example, google says as of March 2015 Facebook had 1.44 b

Kind of off topic but: At what point can a companies growth slow down without it being a concern? For example, google says as of March 2015 Facebook had 1.44 billion monthly active users. With an estimated 3 billion people in the world having internet access that's 50%. Can you really expect to see significant growth at that point? One other thing I've never quite understood is the concern with users vs. revenue. I get that for a start up, you want to grow and grow fast. For an established company like Twitter, as long as your user base isn't actively shrinking, wouldn't it make more sense to concern yourself with making money off those users instead of trying to gain more? What would be a better sign, 1% user growth but 15% revenue growth, or 1% revenue and 15% user?

sandworm101 11y ago
>> At what point can a companies growth slow down without it being a concern? That depends on how reliant the company is on perpetual growth. Many tech companies are not profitable. If growth slows for them, and the rate of slowdown points to a bad place, they may never make a profit and so backers will flee. But others with established businesses don't need growth. They can go on steadily with a mildly increasing market value or pay slow dividends to shareholders. Unless they are over-valued and have leveraged whatever stock they have retained. Such companies may be doomed even if profitable. So there is no definitive answer.