Facebook Beats Wall Street’s Profit Estimates: Ad Business Remains Unaffected Despite Bad Publicity, Gains UsersFacebook (Sean Gallup/Getty Images)

Facebook on Wednesday (30 January) comfortably beat Wall Street’s profit estimates, allaying investor concerns about slowing of growth due to increased spending on users' privacy, reports Business Standard.

Facebook’s shares rose nearly 12 per cent to $168.20 after the bell and closed up 4.3 per cent in regular trading.

Facebook’s decision to spend heavily on the privacy and security of the users came on the back scandals over improperly shared data, which hurt its image making it the target of political scrutiny across the globe.

However, better than expected profit reassured investors in the growth of the company, even after posting its slowest quarterly growth in more than six years of being a public company.

The analysts expected earning of $2.19 per share, but it rose to $2.38 per share, raising the net income to $6.88 billion. Total fourth-quarter revenue rose 30 per cent to $16.9 billion from $12.97 billion, compared to analysts' expectation of $16.4 billion.

According to the report, despite the privacy issues, Facebook has managed to gain new users, mainly from India, Indonesia and the Philippines. The social media giant has 2.7 billion users interact with at least one of its apps each month, up from last quarter’s 2.6 billion.

Haris Anwar, an analyst, said that the worst is over for Facebook and that its ad business and user engagement remained unaffected despite last year's negative publicity.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber