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

  • School reopening to be postponed until November

    Minister of Education Hang Chuon Naron on Tuesday wrote to Prime Minister Hun Sen requesting a delay of school reopening across the Kingdom until November, when the new academic year begins. In his letter, Chuon Naron said the postponement is warranted to avoid the new

  • Foreigners in Kingdom must now register in FPCS system

    The Ministry of Interior’s General Department of Immigration (GDI) announced that it would not grant visa extensions to foreigners staying in Cambodia if their names are not listed on the Foreigners Present in Cambodia System (FPCS) by July 1. Foreign nationals can register in the

  • Covid-19 at ‘alarming rate’, health ministry says

    The Covid-19 risk level for individual transmission is at an “alarming rate” in the Kingdom and its probability is “not low”, warned Health Ministry spokesperson Or Vandine. “Cambodia’s coronavirus scenario is classified as being at an early stage of the pandemic because of ongoing

  • Mandatory quarantine for 30,000 workers begins

    Some of the roughly 30,000 workers from factories and enterprises across the Kingdom who went on leave during Khmer New Year began their government-imposed 14-day quarantine on Monday. Speaking at a press conference while visiting workers at the Phnom Penh Special Economic Zone on Monday, Ministry

  • Unemployed to get $40 per month

    The Ministry of Labour and Vocational Training has instructed enterprises, business owners and travel agencies in five provinces to prepare the proper forms for the suspension of employment contracts. This, it said, will make it easier for the ministry to transfer $40 a month to workers

  • Gov’t travel ban flouted

    While the majority of Cambodians have paid heed to Prime Minister Hun Sen’s order to stay put and not travel during the Khmer New Year – the holidays of which were also postponed – several hundred have left Phnom Penh nonetheless. They have allegedly breached provincial

  • G20 energy ministers struggle to finalise oil output cuts

    Top oil producers struggled to finalise production cuts during a virtual summit held by Group of 20 (G20) energy ministers on Friday, despite US President Donald Trump’s mediation efforts to end a standoff with Mexico. The final G20 communique appeared to gloss over simmering divisions

  • Kingdom revises travel restriction order

    The government on Friday eased the district and provincial border restrictions issued on Thursday. People are now allowed to cross districts within their provinces. Phnom Penh and Kandal province are to be treated as a single region where people are allowed to travel freely. In

  • Private schools struggling

    The Cambodian Higher Education Association has claimed that 113 private educational establishments are facing bankruptcy because of their inability to pay rent and staff salaries in light of nationwide school closures caused by the Covid-19 outbreak. It said the financial trouble started when the Ministry of

  • Khmer New Year holidays postponed

    In an effort to halt Covid-19 infections in the Kingdom, Prime Minister Hun Sen has postponed the Khmer New Year holidays scheduled from April 13 to 16. While the people will not have their usual break, nor will there be any public celebrations or gatherings at pagodas,