Facebook shows good earnings and revenue for the third quarter.
The third-quarter reports were quite mixed for Facebook. Earnings and revenue have improved but the number of users is on the decrease.
Facebook saw a jump of 6 percent, early on trade on Wednesday.
The results were good but were mixed. The number of daily and monthly active users has come down and so has revenue. But earnings per share have exceeded expectations.
Earnings per share show $1.76 billion against the estimate of $1.47, showing good results. The revenues were flat at $13.73 billion against the estimation of $13.78 which was marginally down.
Tech companies which saw a heavy downfall last week saw some relief from the positive results from Facebook.
Facebook CEO Mark Zuckerberg has provided an insight into the strategies for the year ahead. He says that the year 2019 is to be an investment year for Facebook. He has plans for some of his platforms through greater monetization. WhatsApp, Instagram, and Messenger will benefit through his plans, though user base has shrunk for the company.
The daily active users have been down from the expected 1.51 billion to 1.49 billion. The Monthly active users have also come down from expected 2.29 billion to 2.27 billion.
Facebook shares saw wild fluctuations during market trading hours. The shares went zooming down by 6 percent and later shot up by 5 percent. The CEO’s comments had investors trying to analyze each plan that is proposed for the company on growth and spending.
The user-base has seen a massive decline, especially in Europe. Facebook users are more in number in Europe than in the US. In Europe, the privacy laws are stricter. Eric Egan, the chief privacy officer at Facebook, says that Facebook recognizes and values effective and strong privacy legislation.
By the end of the earnings call, the shares of Facebook were up by 3 percent.