Logo of Phnom Penh Post newspaper Phnom Penh Post - Facebook shares yoyo amid data leak issues

Facebook shares yoyo amid data leak issues

Content image - Phnom Penh Post
Facebook shares yoyo amid data leak issues.

Facebook shares yoyo amid data leak issues

Facebook announced plans on Tuesday to adapt to users sharing more privately as the leading social network pours money into an ongoing battle with “bad actors” out to misuse its service.

Silicon Valley-based Facebook reported that its quarterly profit climbed in the recently ended quarter, but the social network – mired in a spate of controversies – gained fewer users than analysts had expected.

Profit beat Wall Street expectations by jumping nine per cent to $5.14 billion on revenue that leaped 33 per cent to $13.7 billion in the quarter that ended September 30.

Facebook shares went for a rollercoaster ride in after-market trades as executives revealed quarterly earnings figures along with challenges and opportunities seen in shifting trends in user behaviour.

Shares jumped, dove and then rose anew before staying on higher ground, up 3.1 per cent to $150.80, on the Nasdaq early in the evening in New York.

“Right now, the market is really nervous and it doesn’t take much to move the stock,” said analyst Rob Enderle.

“As long as they are meeting or exceeding on the bottom line [profit] they will be fine.”

The number of people who used Facebook monthly rose 10 per cent to 2.27 billion, but analysts had expected that figure to be slightly higher.

Facebook has been trying to fend off concerns about how well it protects user data and defends against use of the site to spread misinformation aimed at swaying elections.

Controversies that have battered Facebook since the 2016 presidential election in the US have raised questions over the position of co-founder Mark Zuckerberg as chief executive.

“Our community and business continue to grow quickly, and now more than two billion people use at least one of our services every day,” Zuckerberg said in an earnings call, including WhatsApp, Instagram and Messenger in the count.

“We’re building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well.”

Facebook users are shifting fast to sharing more privately with messages or a “Stories” feature for creating short photo or video collections, instead of posting in their main feeds, according to Zuckerberg.

While Facebook has made an art of monetising ads in newsfeeds, it has yet to optimise making money from messages and stories.

“This is one of those situations where the community growth we are seeing is outpacing the progress we made on developing ads in that space,” Zuckerberg said of Stories.

“I think we will get there in time, and the opportunity will be bigger, but I can’t tell you what that time frame will look like.”

Facebook is also seeing a rapid rise in viewing videos, which also generate less ad money per minute than newsfeeds.

Zuckerberg said he expected next year to be “another year of significant investment” for Facebook, and executives projected revenue growth would slow.

Facebook finished the quarter with 33,606 employees in a 45 increase per cent over the number of workers it had the same time last year.

Just weeks ago, Facebook activated a “war room” to halt manipulation of the social network by foreign actors trying to influence elections.

The war room is part of stepped up security that will include doubling the security team to 20,000 employees.

“The upcoming election will be a real test of the protections we put in place,” Zuckerberg said on an earnings call.

“We will see all the good and bad humanity can do.”

Last week, Facebook said it had taken down accounts linked to an Iranian effort to influence US and British politics with messages about charged topics such as immigration.

MOST VIEWED

  • Breaking: US House passes 'Cambodia Democracy Act'

    The US House of Representatives in Washington, DC, on Monday, passed the “HR 526 Cambodia Democracy Act”, also known as the Cambodia Democracy Act of 2019. If signed off by the president, the bill will allow two major sets of action to be taken against high-ranking Cambodian

  • ‘Zero-dollar’ tours under fire

    Minister of Tourism Thong Khon has blamed “zero-dollar” tour operators for the decrease in foreign tourists to Angkor Archaeological Park in the first half of this year and has called for action against them. Angkor Archaeological Park received 1.24 million foreign visitors in the first half

  • Breaking: Rubbish found packed inside 83 containers at S'ville port

    Eighty-three containers packed with rubbish were broken open at Sihanoukville Autonomous Port by joint authorities on Tuesday. The origin of the containers has yet to be ascertained, Ministry of Environment spokesman Neth Pheaktra said. Pheaktra, who is also the ministry’s secretary of state, said

  • VIP prison scrapped amid much criticism

    The Ministry of Interior announced on Thursday that Cambodia’s first privately run prison, which was to allow prisoners with enough money to upgrade to more comfortable cells, has been scrapped. Ministry spokesman Khieu Sopheak said studies had found that no other country in the