Why is Facebook BLEEDING Users?

Shares of Facebook (NASDAQ:FB) extended losses from Monday after an analyst said on Tuesday there had been a fall in U.S. and European users for the social network. Capstone analyst Rory Maher said U.S. users declined by 1.1 percent over the past six months.

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Maher used proprietary software to track user numbers by country over the past six months across more than 200 countries. Of the 23 countries where Facebook’s penetration exceeded 50 percent, only nine expanded their user base over the past three months, while the remaining 14 countries either had fewer users or saw little change.

“This could be an issue for Facebook growth since we estimate that outside of Southeast Asia and some countries in Latin America, most markets are approaching 50 percent penetration,” Maher said in the report to investors. Facebook last reported more than 900 million users globally.

The company’s stock fell more than 8 percent on Monday, losing $2.47 to close at $28.25. That represented a total drop of 26 percent from its May 18 public offering price of $38. The stock had fallen drastically in the weeks following the IPO, going as low as $25.52, before eventually recovering. But it has only been up on 18 trading days since the IPO, while being down on 22.

Investors have also been concerned about Facebook’s ability to keep up a steadily growing revenue stream and make money from its growing mobile audience. On Tuesday morning, the stock reached as low as $27.15.

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