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NEW YORK – Facebook's Teflon coating was scratched
The user base and the social network business turnover grew more slowly than expected in the second quarter while the l & # 39; business was struggling with privacy issues. The company also warned that it expects a deceleration in revenue growth over the coming quarters, as it promotes new, and at the moment less profitable, products such as its disappearing message function. . It also allows users to make "more choice" around data privacy in the outcry and regulatory pressures.
Earnings covered the company's first full quarter since the Cambridge Analytica privacy scandal. But analysts attribute much of the lack of user growth to the European confidentiality rules that came into effect in May, and not to the fury of the political consulting firm linked to President Donald Trump, who abusively accesses data from tens of millions of dollars. Facebook users.
One hour before trading began on Thursday, equities plunged more than 19%, shedding about $ 17 billion net from Facebook's founder, Mark Zuckerberg.
Still, the results suggest that Facebook may have resisted the scandal. harming his business even though his public image took a hit. While revenues are not up to Wall Street estimates, they are only about 1%; However, Facebook continues to grapple with big existential questions, ranging from the privacy of its users to technological dependence to how it deals with false news and misinformation, hate speech and extremism. on his service. Sometimes it seems that Facebook can not really decide where its values are. For example, it continues to straddle the line between what users say and remain a neutral platform in an increasingly divided world, and between protecting privacy while gathering as much information as possible about its users. June 30, up 11 percent from a year earlier. Analysts were expecting $ 2.25 billion, according to FactSet. Monthly and daily user growth has remained stable in the United States and the rest of North America, while it has declined slightly in Europe.
Facebook has largely saturated the markets of the United States and Western Europe. countries like Brazil, India and Indonesia for new users. However, the incomes of these regions are much lower than those of Facebook in the United States and Europe
. The company earned $ 5.1 billion, or $ 1.74 per share, up 31% and exceeding analysts' expectations by $ 1.71. Facebook said the European privacy rules, called GDPR, did not have a big impact on the quarter's revenues, but also noted that they were only in effect for about a month. before the end of the quarter.
In the long run, GDPR could end up favoring Facebook and other large companies that have the resources to adapt to new requirements. They could similarly disadvantage smaller and less well known companies that do not have the resources to comply and that could face big fines if they do not.
Facebook was good news for Instagram. $ 1 billion in 2012. Instagram now has more than one billion users, and analysts expect it to be a model for how Facebook is transforming its other big-time purchase. 39, Apps, WhatsApp, into a lucrative business. Until now, WhatsApp does not display any ads, and its founders Jan Koum and Brian Acton have left Facebook due to disagreements over advertising and other issues.
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