Facebook's stock dips after Zuck warns Russian crackdown will hurt profits

Adjust Comment Print

The company reported an EPS of $1.59, up 77 percent year over year, and beating analysts' estimates of $1.28.

"Our community continues to grow and our business is doing well", Zuckerberg said. But none of that matters if our services are utilized in ways that do not bring people closer together.

Facebook's top lawyer, Colin Stretch, told U.S. lawmakers this week that the company planned to add roughly 10,000 more employees to aid its efforts to eradicate fake news, misinformation, and state-sponsored efforts to sway public opinion.

Facebook today reported profits leapt 79 per cent on booming revenue from online ads in the third quarter, topping investor forecasts and buoying shares already at record highs.

He went on to stress that protecting Facebook's community was "more important" than boosting profit. This is due to the company's commitment to prevent abuse on its platform.

Chief executive Mark Zuckerberg used the update to address criticism of Facebook for allowing disinformation and manipulation during the 2016 USA presidential election, hours after the company's top lawyer faced a grilling at a Washington congressional hearing.

Trump orders tougher vetting after NY attack
This response, taking action against Muslims, is in stark contrast with Trump's response to the Las Vegas shooting recently. First political blame from Trump: Follows up with tweets the morning of November 1, blaming Democratic New York Sen.

"I've directed our teams to invest so much in security on top of the other investments we're making that it will significantly impact our profitability going forward", Zuckerberg said, "and I wanted our investors to hear that directly from me". Analysts surveyed by FactSet had estimated $1.28 a share on revenue of $9.85 billion. The social media giant, along with Google and Twitter all sent general counsel this week to three scheduled meetings before the Senate Judiciary Committee on Russian influence in the 2016 presidential election.

Yesterday afternoon-one day after Facebook, along with Google and Twitter, testified to U.S. Congress about the company's involvement with Russian Federation in last year's presidential election-CEO Mark Zuckerberg discussed Facebook's third-quarter earnings with investors.

Zuckerberg outlined investment priorities that included video content, which he described as the biggest trend at Facebook.

Mobile advertising revenues continue to be dominant contributor to ad revenues as it represented 88 percent of advertising revenue for the quarter, up from 84 percent previous year. Facebook also said that the ads possibly reached over 126 million Americans.

Instagram Stories and WhatsApp Status, 2 ephemeral messaging products Facebook mostly cribbed from Snapchat, have actually both now exceeded 300 million monthly active users, making them nearly twice as popular as all of the Snapchat.

Read the full earnings release here. "What they did is wrong, and we are not going to stand for it".

Comments