Facebook Inc (NASDAQ: FB)
Facebook reported weaker than anticipated third-quarter revenue and monthly user growth. However, its bottom line surpassed the views of Wall Street analysts as the social media giant continued to fend off the impact of the data harvesting scandal by Cambridge Analytica earlier this year.
The latest profit beat triggered a rise of more than 3% in the company’s shares during the extended trading session on Tuesday. The stock, which has fallen 17% since the beginning of the year, closed regular trading at $146.22.
Facebook announced net income of $5.14 billion for the quarter, compared with $4.71 billion in the comparable period a year ago. On a per-share basis, earnings rose to $1.76 a share, from $1.59 a share in the prior-year period.
Net sales came in at $13.73 billion, compared with net sales of $10.14 billion in the same three months last year. Analysts were expecting adjusted earnings of $1.47 per share on net sales of $13.78 billion, according to figures compiled by Refinitiv.
Facebook had a total of 1.49 billion daily active users on average in September, which is an increase of 9% from the prior year quarter, but fell short of the consensus of 1.51 billion.
Monthly active users climbed 10% year over year to 2.27 billion at the end of September but missed the consensus of 2.29 billion. Facebook estimates that the monthly number of Facebook, Messenger, WhatsApp, and Instagram users currently stands at more than 2.6 billion.
Facebook CEO Comments
“Our community and business continue to grow quickly, and now more than 2 billion people use at least one of our services every day,” said Mark Zuckerberg, Facebook founder and CEO “We’re building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well.”
Facebook Inc Company Profile
Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its products include Facebook Website and mobile application that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers.
It also owns Instagram, a community for sharing visual stories through photos, videos, and direct messages; Messenger, a messaging application to communicate with other people, groups, and businesses across various platforms and devices; and WhatsApp, a mobile messaging application.
The company also offers Oculus virtual reality technology and content platform, which allows people to enter an immersive and an interactive environment to train, learn, play games, consume content, and connect with others. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California. – Yahoo Finance