Facebook shares jump after Q4 earnings
Facebook shares rose almost 9% after the social media company reported its slowest quarterly revenue growth in six years on Wednesday.
Facebook shares rose almost 9% on Wednesday, after the social media company reported its quarterly revenue growth.
While the revenue growth was the slowest in six years, it beat Wall Street’s profit estimates, calming investor worries.
Net income rose to $6.88 billion in the fourth quarter up from $4.27 billion last year.
Total fourth quarter revenue rose 30% to $16.9 billion from $12.97 billion, beating analysts’ estimations of $16.4 billion.
Total expenses in the fourth quarter surged to $9.1 billion, up 62% from last year, while the operating margin fell to 46% from 57%.
Facebook's revenue grew despite the recent controversies about data mining and data breaches involving customers.
The social media’s daily active users were 1.52 billion, keeping in line with predictions. Monthly daily users were 2.32 billion, as expected.
The company also says it estimates around 2.7 billion people now use Facebook, Instagram, WhatsApp, or Messenger each month.
‘We've fundamentally changed how we run our company to focus on the biggest social issues, and we're investing more to build new and inspiring ways for people to connect,’ said CEO Mark Zuckerberg
Faecbook shares surge after hours
Facebook Inc shares rose upto 9% to USD $163.30 after hours and closed 4.3% in regular trading.
The company's shares have lost a third of their value over the past six months, as the share price remains near its lowest point in two years.
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