Facebook Shares Higher As Third-Quarter Results Crush Estimates

Facebook Shares Higher As Third-Quarter Results Crush Estimates

Facebook Shares Higher As Third-Quarter Results Crush Estimates

Wall Street largely gushed over Facebook's comfortable earnings beat, but analysts are keeping a wary eye on the social network's costs for security and content.

Facebook CEO Mark Zuckerberg was similarly optimistic about video: "Over the next three years, the biggest trend in our products will be the growth of video".

"Our community continues to grow and our business is doing well", said CEO Mark Zuckerberg in a statement stating the obvious.

He said in the conference call that he expects Facebook expenses to increase anywhere from 45 to 60 percent for the 2018 fiscal year, or outpace expected sales.

On Tuesday, Facebook's general counsel Colin Stretch testified to Congress that 126 million USA users may have seen fake news or political advertisements bought by Russian Federation in 2016. Daily users grew 1.37 billion on average, while monthly users grew to 2.07 billion. "Protecting our community is more important than maximizing our profits", he said.

"We're serious about preventing abuse on our platforms".

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The increase in security comes after Facebook, along with other tech giants, Amazon and Twitter, testified before Congress about the Russian ads meddling with the US 2016 Presidential elections.

"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".

QUALCOMM earnings came in at $.92 versus $.82 expected.

Here is a look at each of Facebook's earnings report dating back to the third quarter of 2016, courtesy of Statista.

Despite repeated warnings that revenue growth would decelerate meaningfully in the second half of the year as growth in ad load slowed, Facebook's third-quarter year-over-year ad revenue growth actually accelerated, rising from 47% in Q2 to 49% in Q3. Mobile advertising generated 88 percent of ad revenue, and is up 84 percent year over year. Daily active users, a metric closely watched by analysts and investors, rose 16% to 1.37 billion, compared with the year-earlier period. "We're building AI to go after more different areas of harmful content and finding fake accounts and other bad actors in the system".

"We now discovered, in the last 48 hours, 120,000 Russian-based posts on Instagram", Stretch told the Senate Intelligence Committee hearing.

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