The firm’s stock dropped over six per cent in late-afternoon trading after it reported a yearly revenue growth decline of about 10 percentage points in 2019—and disclosed the class-action lawsuit. (The Logic)

Talking point: Facebook is facing particular struggles in advanced economies. In the U.S. and Canada, for example, its sales grew by 22 per cent year-over-year, the slowest increase ever; average revenue per user grew 19 per cent, compared to 30 per cent in the same quarter of the previous year. The company is hoping to make up for its slowing growth by increasing revenue in emerging economies and with new product lines. To emphasize its growing reliance on the latter, Facebook disclosed for the first time average revenue per user for Instagram, Messenger and WhatsApp. On an earnings call, CEO Mark Zuckerberg highlighted his plan to allow direct purchases on Instagram. That business is a direct challenge to Ottawa’s Shopify, but it’s also something Zuckerberg talked about on a call a year ago, and is still in a pilot phase. The firm’s legal troubles may also be a major challenge going forward. It currently faces six active investigations around the world, and its US$5-billion privacy settlement with the U.S. Federal Trade Commission is being challenged in court by advocacy groups for not being heavy enough.