Despite mounting criticism from USA lawmakers over Russia's use of its platform to spread propaganda, the company's stock has been trading at all-time highs ahead of Wednesday's results. The stock was down 2.1 percent midmorning Thursday.
Analysts fear the controversy over how Russian Federation surreptitiously used Facebook during the 2016 election is not just bad PR but may hit the social media titan's impeccable bottom line as the company invests further in security to take itself out of the political crosshairs. 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.
An nearly life-and-death struggle with unwanted content, including fake news and hate speech, may seriously hurt Facebooks' profit margins, according to the company's founder and CEO Mark Zuckerberg.
Facebook has acknowledged that its growth rate is slowing down, but now the company is shifting its focus to increase user engagements with videos and its new subscription platform, which can generate even more profits. And while each company has voiced interest in dealing with interference in social media internally, the possibility of regulation also weighs on investor sentiment.
He said in the conference call that he expects Facebook expenses to increase anywhere from 45 to 60 percent for the 2018 fiscal year, or outpace expected sales. It dropped below Wednesday's close after the company disclosed plans on potential spending.
Facebook was at the center of news today, affirming in front of the lawmakers in Washington DC about how state participants like Russian Federation used its platform to attempt and change the outcome of the 2016 U.S. election. We are investing so much in security that it will impact our profitability. Facebook also said that the ads possibly reached over 126 million Americans.
Mauricio Pochettino: 'Jose Mourinho fallout in the past'
One player who will be available for Mourinho on Saturday is Nemanja Matic. My relationship with him is very good, we are in contact". Because of his words? "I was honest.
"I'm dead serious about this", Zuckerberg said.
To be sure, Facebook's performance so far this year is nothing to complain about.
The number of monthly active users at the social network continued to grow, reaching 2.07 billion, an increase of 16 percent from the same time past year.
Ad revenue saw a 49 per cent year-on-year (YoY) increase compared to Q3 2017, with mobile ad revenue representing around 88 per cent of that total. Facebook stock has gained 58.9% this year, with the S&P 500 index rising 15%.
"FB remains our top large cap internet pick and we think that momentum in the name can continue through the end of the year", wrote Jefferies analyst Brent Thill. Daily active users: 1.37 billion, up from 1.32 billion last quarter.