Despite a stellar Q3, 2 forces could clip Facebook's future results

Joanna Estrada
November 3, 2017

However, its shares fell, as it announced its 2018 expense forecast. Having said his piece about "false news or hate speech or bullying or any of the bad content we're talking about", Zuckerberg went on to talk about Facebook's other product priorities.

However, shares later dipped 1.7 percent to $179.50 in after hours trading after CEO Mark Zuckerberg said the company would sacrifice profitability in the near term to beef up security.

The UK newspaper said the disclosure could lead to Facebook coming under increased scrutiny about the accuracy of its data and it comes as the company, along with other social media giants, came under pressure this week to explain whether their platforms spread fake news during the USA presidential election. We're investing so much insecurity that it will impact our profitability.

Protecting the Facebook community is more important than "maximizing our profits," Zuckerberg said on the call.

Yesterday, Facebook reported its Q3 earnings, beating expectations for user numbers and revenue.

Yesterday afternoon-one day after Facebook, along with Google and Twitter, testified to U.S. Congress about the company's involvement with Russian Federation in last year's presidential election-CEO Mark Zuckerberg discussed Facebook's third-quarter earnings with investors.

The disclosure could lead to increased scrutiny of the social network as it is under pressure to reveal how fake news and politically charged advertising may have affected last year's United States election as well as democracy around the world.

Every month, 2.072 billion people use Facebook, up 16 per cent from a year earlier. This means that these Snapchat clones are almost twice as big as the entire Snapchat app, which has 173 millions DAUs.

Ad prices will have more impact on future ad revenue than the number of ads Facebook sells, according to Wehner.

The increase in security comes after Facebook, along with other tech giants, Amazon and Twitter, testified before Congress about the Russian ads meddling with the US 2016 Presidential elections.

Facebook also recently caused panic amongst publishers when it ran tests of an updated News Feed which removed all posts from the feed, and relegated them to a different, hidden feed, with publishers having to pay to get back on to the feed.

Other reports by Click Lancashire

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