Facebook's third-quarter financial results and outlook for the next three months were above analysts' expectations, pushing the social media giant's stock price up more than 3.5%. Obviously, the investors of the IT giant did not pay much attention to the series of exposing publications of the Western media, focusing exclusively on the company's results in the reporting period.
The report said that for the third quarter, earnings per share were $ 3.22, while analysts had expected this figure to be $ 3.19. At the same time, the total revenue of Facebook in the quarter amounted to $ 29.01 billion, instead of the projected $ 29.57 billion. Average revenue per user (ARPU) reached $ 10, instead of $ 10.15. The company also announced a $ 50 billion expansion of its share buyback program, which is expected to add value to Facebook's stock. Facebook will see significant changes next year aimed at increasing its competitiveness with short video platforms such as TikTok. This activity is driven by the company's desire to make its social networks Facebook and Instagram more popular among users between the ages of 18 and 29.
During his speech at the reporting conference, the head of Facebook, Mark Zuckerberg, argued for his company, which was subjected to a series of scandalous revelations after the leaked internal documents of the IT giant. Former Facebook employee Frances Haugen earlier this month provided access to numerous internal documents from the IT giant, based on which the media released many revealing articles . The essence of many publications boils down to the fact that Facebook is well aware of the problems on its platforms, but the company does nothing to solve them, as this can lead to a decrease in the profit received. Zuckerberg denied this claim and called the media publications"A coordinated effort to selectively use leaked documents to create a false image of the company . "
At the same time, it was announced that the reporting division of Facebook Reality Labs will be spun off into a separate company in the fourth quarter of this year. This division specializes in creating products for augmented and virtual reality. Another segment of reporting will be related to the company's mobile services, including applications Facebook, Messenger, WhatsApp, Instagram, etc. Facebook expects that investments in segments related to the production of equipment and virtual reality will affect the reduction of operating profit in 2021 by about $ 10 billion .
Regardless, Facebook's ad business continues to grow steadily. The company reported a 35% increase in quarterly revenue compared to the third quarter of last year. At the same time, net profit increased by 17% to $ 9.2 billion, while a year earlier this figure was equal to $ 7.8 billion.
The company expects fourth-quarter revenue to range from $ 31.5 billion to $ 34 billion and sales to grow to $ 34.8 billion. Facebook noted "significant uncertainty" stemming from Apple's privacy policy change and macroeconomic factors related to the impact pandemic coronavirus. The company noted that the change in Apple's privacy policy, which no longer allows the collection of user data without their explicit consent, was "the biggest obstacle" in the quarter.
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