Facebook, Inc. (NASDAQ: FB)
Facebook investors went to bed angry on Wednesday after the social media titan announced disappointing second-quarter earnings.
The drop accelerated further when Chief Financial Officer David Wehner warned that revenue slowdown will continue in the next two quarters.
Facebook wiped off close to $130 billion of its value following the downbeat earnings and guidance. The social network has found itself at the center several controversies this year, including the infamous Cambridge Analytical saga.
FB Earnings & Outlook
The company reported net income of $5.12 billion, or $1.74 per share for the quarter, compared to $3.89 billion, or $1.32 per share in the same period last year.
Global daily active users totaled to 1.47 billion compared with estimates of 1.49 billion. The total number of active users in North America and Europe was 185 million and 279 million, respectively. As of June 30, 2018, Facebook had 2.23 billion monthly active users.
Facebook CEO Comments
Facebook chief executive, Mark Zuckerberg had the following to offer during the company’s earnings conference: “Over the next 18 months, there are important elections beyond the US in Brazil, India, and the EU. These will all be real tests for Facebook. But I’m more confident we will get this right given our results during last year’s French and German elections, the Alabama special election—as well as this month’s presidential election in Mexico—where our systems found and removed thousands of fake accounts, pages, and groups that violated our policies. Of course security is not a problem you ever fully solve. We face sophisticated, well-funded adversaries who are constantly evolving. But during each election, we learn and improve too.”
Facebook, Inc. Company Profile
Facebook, Inc. offers various social media applications that aimed at connecting people through personal computers, mobile devices, and other surfaces globally.
Its products enable people to share videos, photos, ideas, opinions, among other activities online. Some of the most popular products offered by the company include Facebook, WhatsApp, Instagram, Oculus, and Messenger.
Facebook mobile application and website enables users to connect, communicate, discover, and share with each other on personal computers and mobile devices.
Instagram enables people to share visual stories through direct messages, photos, and videos, and WhatsApp is a mobile messaging application.
Messenger, is a messaging application that allows users to communicate with other users, businesses, and groups across various devices and platforms.
Oculus is a virtual reality technology and content platform that enables users to enter an interactive and an immersive environment to play games, connect with others, consume content, train, and learn.
Facebook, Inc. was founded in 2004 by Mark Zuckerberg, Andrew McCollum, Dustin Moskovitz, Eduardo P. Saverin, and Chris R. Hughes.
The company competes with Alphabet, Inc., Twitter, Inc., Microsoft Corp., and Snap, Inc. Its headquarters are based in Menlo Park, California. -Reuters