The first social network, which had no marketing capabilities, was sold to Google for $1 billion in January 2013.
It was acquired by Facebook for $2.5 billion in February.
The social network business is a $4 trillion market worth more than the combined gross domestic product of the United States, China, Germany and France.
But that growth will slow to a trickle unless Facebook and its competitors make inroads on the smartphone market.
The company is expected to launch a social network in the fourth quarter of this year and has a long way to go to compete with its biggest rival.
Facebook is also developing a video-sharing platform called Oculus Rift, which is expected later this year.
The Facebook business is still in its early days.
It has only about 40 million users and has had a slow start.
Facebook also faces a number of legal challenges and legal disputes, including a lawsuit filed by the U.S. government over Facebook’s policy of allowing users to post content in the U .
That lawsuit was dismissed in February after a judge ruled that Facebook could continue operating the platform and was not subject to the First Amendment restrictions of the First Circuit.
Facebook said it will appeal the ruling to the Supreme Court.
Facebook shares fell 3.7% to $3,788.23 in afternoon trading on Monday.
The stock has a market value of $9.7 billion.