[ad_1]
Facebook shares rose in protracted trading on Wednesday after the company posted earnings and earnings higher than expected for the second quarter.
The growth in the number of Facebook users, who owns Instagram and WhatsApp, has been in line with expectations.
- Earnings: $1.99 cents per share versus $ 1.88 per share, according to Refinitiv's forecast
- Returned: 16.9 billion USD, against 16.5 billion USD, expected by Refinitiv
- Daily active users: 1.59 billion, against 1.59 billion expected by FactSet
- Monthly active users: 2.41 billion, compared to 2.41 billion provided by FactSet
- Average revenue per user: Forecast of $ 7.05 compared to $ 6.87 per FactSet
On Wednesday, Facebook reached a $ 5 billion deal with the Federal Trade Commission following the 2018 scandal at Cambridge Analytica, in which data from 87 million Facebook users had been inappropriately viewed. Late Tuesday, the Department of Justice announced a major antitrust review of the dominant technology platforms.
The company reported a charge of $ 2 billion during the quarter related to the settlement with the FTC. Previously, he reserved $ 3 billion.
The company said that it has more than 2.7 billion monthly users in its application family, up slightly from the previous quarter. Facebook has seen its user base in Europe remain stable, with 286 million daily active users. The number of users of the company in the United States and Canada rose to 187 million, up slightly from 186 million in the previous quarter. The company said the average revenue per user was $ 7.05, up 18% from $ 5.97 a year ago.
Facebook also announced that it had been informed in June by the FTC that the agency had opened an antitrust investigation on the company.
Facebook's business continues to grow at a rapid pace. The company is undergoing a major transition from news feeds as it increases advertising revenues for its new Stories products. Already, Facebook claims to have more than 500 million daily users for Stories features on Facebook, Instagram, WhatsApp and Messenger.
In a March note, CEO Mark Zuckerberg wrote that Facebook's future would be "encrypted private services". The company is striving to integrate the messaging features of WhatsApp, Messenger and Instagram, and Zuckerberg said he expects "Messenger and WhatsApp to become the primary means of communication on the Facebook network" . Investors will look for signs that it is possible for his company to focus more on protecting privacy while continuing to increase its revenue and its number of users.
Facebook shares are up 54% in 2019.
WATCH: Here's how to find out which apps have access to your Facebook data – and cut them
Source link
