• Company
  • Products online
  • News terminal

Products online

  • News terminal
  • Caspian Oil & Gas Trends
  • Monthly Azerbaijan Business Monitoring
  • Weekly Azerbaijan Business Monitoring
  • Caspian, Turkey Building & Logistics Monitoring
  • Azerbaijan Energy Projects Review
  • Azerbaijan Banking Analytics
  • Iran Energy Economy Review
  • Central Asia Economic Outlook
  • Weekly Tenders Report
  • Azerbaijan Industry Agriculture Review
  • Azerbaijan Monthly IСT Monitoring
  • Regional Finance
ORDER TRIAL VERSION

Company

  • About company
  • Trend Information Service
  • Vacancies

Communications

  • Reference
  • Achievements

For clients

  • How to subscribe
  • Instant paid access
  • Support service

Trend in social networks

  • Facebook
  • Twitter
  • Youtube
  • Telegram
  • RSS
  • IOS
  • Android

Info Services

  • Trend Politics
  • Trend Society
  • Trend Economy
  • Trend Energy
  • Trend ICT
  • Trend Tourism
  • Trend Culture

Contacts

  • Bakhtiyar Vahabzade Str., 14, Baku, Azerbaijan, AZ1141.
  • sales@trend.az
  • + 994 12 437-12-68
  • RU
  • AZ
  • EN
  • TR
  • FA
AzerNews.Az Today.Az
  • Login
  • Sign up
Trend.Az
  • Latest
  • Azerbaijan
    • Politics
    • Economy
    • Nagorno-Karabakh conflict
    • Society
    • Other News
  • Economy
    • Oil&Gas
    • ICT
    • Finance
    • Business
    • Tenders
    • Tourism
    • Construction
    • Transport
  • Iran
    • Nuclear Program
    • Politics
    • Business
    • Society
  • Central Asia
    • Kyrgyzstan
    • Kazakhstan
    • Turkmenistan
    • Tajikistan
    • Uzbekistan
  • South Caucasus
    • Armenia
    • Georgia
  • World
    • Turkey
    • Europe
    • US
    • Russia
    • Israel
    • China
    • Arab World
    • Other News
  • Latest
  • Azerbaijan
    • Politics
    • Economy
    • Nagorno-Karabakh conflict
    • Society
    • Other News
  • Economy
    • Oil&Gas
    • ICT
    • Finance
    • Business
    • Tenders
    • Tourism
    • Construction
    • Transport
  • Iran
    • Nuclear Program
    • Politics
    • Business
    • Society
  • Central Asia
    • Kyrgyzstan
    • Kazakhstan
    • Turkmenistan
    • Tajikistan
    • Uzbekistan
  • South Caucasus
    • Armenia
    • Georgia
  • World
    • Turkey
    • Europe
    • US
    • Russia
    • Israel
    • China
    • Arab World
    • Other News
  • Trend Photo
  • Login
  • Sign up
  • Home
  • World
  • Other News

Facebook beats on profit as cost growth slows; shares rise

31 October 2019 02:57 (UTC+04:00)
  • 0
  • 0

Facebook Inc (FB.O) reported better-than-expected quarterly revenue on Wednesday and a rise in profit as growth in expenses slowed from a year earlier and the number of users ticked higher, assuaging investor fears of fallout from fierce scrutiny by regulators and lawmakers, reports Trend referring to Reuters.

Shares rose nearly 2% after hours to $191.49.

Third-quarter revenue rose 29% compared with a year ago to $17.65 billion, beating analysts’ average estimate of $17.37 billion, according to IBES data from Refinitiv.

The world’s largest social media company reported $6.09 billion in profit, or $2.12 per share. Analysts expected $5.47 billion in profit, or $1.91 per share.

Over the last three years, Facebook has faced rising hostility from both users and lawmakers over its handling of user data and its inability to ensure the integrity of its popular news feeds. It also faces growing regulatory challenges as U.S. authorities investigate whether it has engaged in anti-competitive practices.

Debra Aho, eMarketer principal analyst, said she was “not surprised” by Facebook’s solid results.

“Advertisers continue to support Facebook, despite the many controversies swirling around the company, and the user base also continues to expand around the world,” Aho said in an emailed statement. “Yes, Facebook has a lot of challenges it must deal with, but increasing its revenue and user count isn’t one of them.”

Facebook, the world’s No. 2 seller of online ads, had experienced about 18 months of slow sales growth and elevated spending heading into the third quarter. Concerns over privacy have fueled an acceleration in costs for privacy staff and other roles.

Facebook’s privacy scandals have helped inspire browser makers, operating system vendors and other software companies to provide people with more tools to block the type of online tracking that has been essential to Facebook’s algorithms for targeting ads.

Facebook, Twitter Inc (TWTR.N) and Alphabet Inc’s (GOOGL.O) Google have been under pressure to police their platforms after facing criticism for failing to counter alleged Russian interference in the 2016 U.S. presidential election.

In recent weeks, Facebook has come under fire over its decision not to fact-check ads run by politicians on the platform.

Twitter’s CEO, Jack Dorsey, on Wednesday said Twitter will ban political advertising on its platform from Nov. 22.

Facebook’s existing businesses continue to grow at a fast pace. But whether it can maintain the momentum has been unclear with newer ventures including privacy-focused messaging services, its expansion into online dating or its burgeoning features for group discussions and eBay-like shopping center.

For the quarter, the company reported 2.8 billion monthly users and 2.2 billion daily users across Facebook, Messenger, Instagram and WhatsApp, both slightly higher than the prior quarter.

Facebook itself had 1.62 billion daily users, versus estimates of 1.61 billion. Monthly active users rose to 2.45 billion, in line with estimates, according to IBES data from Refinitiv.

Facebook, which experienced stagnant user growth in Europe and the United States in previous quarters, added daily users compared to the previous quarter in all four of its regions for the first time this year.

Facebook also said one of its board directors, Susan Desmond-Hellmann, chief executive of The Bill and Melina Gates Foundation, would be stepping down and that a replacement would be named in the coming months. Facebook CEO Mark Zuckerberg said she is leaving for health and other commitments.

Facebook shares have gained about 43.6% this year through Wednesday’s close, thanks to above-expectations revenue in the first half of the year. The company reached a $5 billion settlement in a U.S. Federal Trade Commission probe, which started after its Cambridge Analytica data misuse scandal and threatened to cost the company several more billions.

Even so, shares have not recovered to their record closing high of $194.32 in June 2018, just before a dramatic drop that summer amid escalating costs.

And Facebook still faces extensive regulatory challenges. Its competitive practices are under investigation separately by the U.S. Congress, Department of Justice, FTC and 47 state attorneys general.

The break-up or tighter regulation of Facebook and other big tech firms over antitrust concerns has also emerged as a key issue for Democratic candidates in the run-up to the November 2020 U.S. presidential election.

Last week, Zuckerberg was grilled by U.S. lawmakers on issues from Facebook’s planned digital currency Libra to election interference.

The Libra project has faltered in recent weeks amid sustained criticism from lawmakers and regulators globally over fears it may aid money laundering and upend the global financial system.

Facebook’s total expenses in the third quarter were $10.5 billion, up 32% compared with a year ago. The third-quarter operating margin was 41% from 42% a year ago.

(In 3rd paragraph, corrects revenue number and percentage rise to 29% and $17.65 billion, respectively, not 28% and $17.38 billion, which is ad revenue)

Follow Trend on Telegram. Only most interesting and important news

  • Tags:
  • shares
  • Facebook
Related news
Facebook no longer among Glassdoor's top 10 workplaces
US 10:17
U.S. senators threaten Facebook, Apple with encryption regulation
US 03:03
EU antitrust regulators mull tougher line against tech giants
Europe 10 December 14:38
Kazakhstan's gold producer acquires over 50% share in KAZAKHALTYN Concern
Business 4 December 12:29
Facebook continues to lead social media market in Azerbaijan
ICT 2 December 18:06
Facebook corrects user's post under new Singapore fake news law
US 30 November 09:52
Latest
TAP, IGB, IAP projects need to be accelerated, says Greece
Oil&Gas 12:37
President Ilham Aliyev receives BP Chief Executive Officer (PHOTO)
Politics 12:36
Turkey increases export of chemical products to Azerbaijan
Turkey 12:23
Exports of Turkey's defense industry to Azerbaijan up in November 2019
Turkey 12:22
Uzbekistan produces new type of textiles in co-op with Japanese Kuraray
Business 12:20
Turkey's trade with Belarus increases by nearly $30M
Turkey 12:20
Uzbekistan, EU prepare to sign new co-op agreement
Business 12:14
Turkey's exports of agricultural products to Turkmenistan decreases
Turkey 12:12
Turkmen ministry to put up state property for sale
Business 12:10
Most popular
Another opposition party to join early parliamentary elections in Azerbaijan
Another opposition party to join early parliamentary elections in Azerbaijan
Heydar Aliyev İnternational Airport expands geography of flights and attracts new airlines
King Abdullah II of Jordan completes official visit to Azerbaijan (PHOTO)
Kazakhstan ratifies agreement with CIS countries to fight cybercrime
Commentary
Rob Sobhani: Tree planting initiative in Azerbaijan will become model for other countries

Rob Sobhani: Tree planting initiative in Azerbaijan will become model for other countries

Turkish diplomat: Armenia must fulfill 3 basic demands of Ankara to establish relations
Azerbaijani parliament needs new persons dealing with tasks more effectively - expert
Azernews Newspaper
Trend.Az
  • About
  • Our Team
  • Products online
  • Trend Information Service
  • News terminal
  • News archive
Contacts
14, Bakhtiyar Vahabzade, Baku, Azerbaijan, AZ1141
+(994 12) 497-31-72
news@trend.az
+(994 12) 497-30-89
© 2019 Trend News Agency
Terms of use