Stocks, Technology

Facebook Q3 earnings: profit beats estimates

Surprise surprise, Facebook beats profit estimates. I was skeptical in this round considering Apple’s effort on privacy and I was wrong Looks like ads are still doing pretty well.

Facebook reported mixed third quarter earnings on Monday, slightly missing revenue estimates but continuing to grow its user base in the face of multiple controversies that have sparked widespread criticism and calls for tighter regulation.

Here are the most important numbers from the report compared to analysts’ expectations, as compiled by Bloomberg:

Revenue: $29.01 billion versus $29.45 billion expected

Earnings per share: $3.22 versus $3.17 expected

Family daily active users: 2.81 billion versus 2.76 billion expected

Family monthly active users: 3.58 billion versus 3.51 billion expected

Yahoo Finance

And Mark Zuckerberg had to mention the metaverse again.

“We made good progress this quarter and our community continues to grow. I’m excited about our roadmap, especially around creators, commerce, and helping to build the metaverse.”

Mark Zuckerberg, Facebook founder and CEO

Apple is announcing Q4 2021 earnings release on October 28.

Stocks

Facebook fined $69.6 million in the UK for Giphy takeover

After Facebook acquired the popular GIF repository Giphy (reportedly for $400 million), the UK’s Competition and Markets Authority (CMA) launched an investigation to determine if the merger would lessen competition. As part of that probe, it said Facebook couldn’t continue with activities related to the merger (integrating products, merging teams and so on) without prior approval from the CMA. 

Now, the CMA has announced that it has fined Facebook £50.5 million ($70 million) for breaching those enforcement orders. “This is the first time a company has been found by the CMA to have breached an [order] by consciously refusing to report all the required information,” the CMA said in a press release. 

Engadget

The troubles with Facebook just never ends although $70m is probably not significant to Facebook.