Facebook earnings account for expected multibillion-dollar FTC fine, but stock still gains

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Facebook stock jumps nearly 5% following quarterly results

Facebook took a $3 billion charge in the first quarter, as it “reasonably estimated” that it will be required to pay that much as the FTC looks to punish the company for violating a consent decree on user privacy. Without that charge, Facebook would have easily topped earnings estimates, so after a brief decline in shares during after-hours trading, they jumped back up to a 4% gain.

Facebook reported first-quarter profit of $2.43 billion, or 85 cents a share, on sales of $15.08 billion, after posting earnings of $1.69 a share on sales of $11.97 billion in the same quarter a year ago. Net income would have been $5.43 billion, or $1.89 a share, without the charge for the expected FTC fine. Analysts on average expected earnings of $1.62 a share on revenue of $14.98 billion, according to FactSet.

 

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Very surprising, it's become a waste of time for millions of users because of all the censorship. Tick tock is a much better app for entertainment and there are numerous news curator apps much better than facebooks limited hangout. Faceberg has turned into MySpace...

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