Facebook revenues reach over $10B in 3 months

Posted November 04, 2017

Daily active users amount to 1.37bn, up 16pc on previous year.

Facebook CEO Mark Zuckerberg did a "masterful" job discussing the impact of Russia's election meddling during the company's post-earnings conference call, CNBC's Jim Cramer said Thursday.

Facebook's third-quarter profit and sales exceeded Wall Street expectations, however the social media giant's shares slid after it admitted that 2018 expenses would rise 45% to 60%, outpacing expected sales. But Zuckerberg also said he was "dead serious" about fixing security and that doing so "will significantly impact our profitability going forward".

That means that as many as 270 million of the platform's 2.1-billion-strong user base could be fraudulent - a population verging on the size of the United States. Average revenue generated per daily user is at its highest level at around $7.54.

Investors, however, it seems did not like the profitability outlook as the stock was down in after-hours trading despite the fantastic earnings report.

Appearing in front of a Senate judiciary subcommittee, Facebook confirmed reports that ads bought in Russian Federation were delivered to an estimated 126m people during last year's election campaign. Expenses rose to $5.2 billion from $3.9 billion in the same quarter past year, and headcount at the company was up 47 percent to 23,165 employees. Facebook added that it would keep investing in its fledgling VR and AR businesses. However, by the third quarter of 2017, its headcount has grown to 23,165 people, possibly driven by the need to police its social network for fake news and political interference. That's a big number even for Facebook. He said Facebook will double the security team to 20,000 in the next year (Facebook now has 23,165 employees) and introduce a tool that allows users to see a full archive of advertisements run by any political advertiser. Further, Wehner said that capital expenditure would double in 2018.

Many of Texans players kneel during national anthem in protest of owner
McNair, who first apologized in a statement on Friday, released a second statement regarding his comments on Saturday. As the anthem began, Texans players looked around at each other and then the majority knelt in unison.

Security is clearly a major and costly issue for Facebook.

It will require a pretty evident moral compass for Facebook to navigate the doldrums it finds itself in due to alleged gaming of its platform by Russian agents and the internal and external backlash at Zuckerberg's initial dismissal of the fake news epidemic as "pretty crazy".

This will start with the removal of duplicate accounts.

"This quarter, we implemented a new methodology to help identify duplicate accounts", noted Wehner in an earnings call. According to the results, 10pc of Facebook's 2.07bn monthly users are duplicate accounts.

Trust engineers to find a silver lining in stormy clouds.

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