Facebook didn’t meet market expectations
Facebook reported strong growth in both revenues and profits. But the stock fell because the results showed weaker growth than analysts expected.
The world’s largest social network stated that profits rose by 31% in the second quarter to 5.1 billion dollars, compared to 3.9 billion dollars during the same period last year.
Revenues increased by 42% to 13 billion.
The number of monthly users was just over 2.2 billion, which was lower than analysts’ expectations.
Advertising sales increased 42%, but growth was dampened by a 50% cost increase, largely attributable to measures introduced following the Cambridge Analytica scandal this spring.
The Facebook stock fell almost 7% in the stock market after having risen sharply during normal opening on Wednesday.
© NTB scanpix / #Norway Today