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Recode Daily: Facebook has run out of room to show more ads, and investors aren’t happy

Q3 was great, but revenue growth is expected to slow.

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Facebook delivered another blowout quarter, then soured the mood with the news that it was now running as much advertising as its users will tolerate, meaning its rapid revenue growth will slow significantly next year. That, combined with “aggressive” spending plans, sent the stock down 7 percent. — [Kurt Wagner / Recode]

Spending on digital ads is booming, but by one analysis, all that new money is going to just two companies: Facebook and Google. Collectively, the rest of the digital ad industry shrank in the first half of the year, says Jason Kint of the trade group DCN. — [Peter Kafka / Recode]

Microsoft unveiled its Slack rival, Microsoft Teams, a chat-based workplace collaboration tool that ties into its existing Office 365 subscriptions. Slack greeted the competition with a passive-aggressive "welcome" letter. — [Tom Warren / The Verge]

Deciding not to pursue an extended and expensive legal battle, Gawker Media founder Nick Denton has proposed a $31 million settlement in the sex tape lawsuit filed by Hulk Hogan and backed by Peter Thiel. — [Peter Kafka / Recode]

When delivery startup Postmates raised its recent $141 million funding, its investors did something unusual to help keep early employees motivated: They converted their previously owned preferred shares to common stock, giving up favored treatment in the event of a sale. — [Jason Del Rey / Recode]

On the latest episode of Recode Media with Peter Kafka, Bustle CEO Bryan Goldberg talks about running a website aimed at women and how he had to apologize to that audience for some tone-deaf commentary at its launch. — [Eric Johnson / Recode]

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