The stocks of Facebook increased after the trading hours by 9%, an announcement was made by the company that it will be taking charge at once of $5 billion because of an inquiry done by FTC. The revenue expectations of the company have increased and it also exceeded the matched estimates for growth of its regular and active users.
Because of the charges anticipated by FTC, the earnings of the company on each share cannot be compared with expectations of analysts. It was said by the company that on comparing with last quarter, the monthly users across their app family were unchanged as it counted to 2.7 billion.
Facebook has seen that their daily active user base has grown up to 286 million in Europe. This growth is much larger than the old user’s number that is 282 million. The user base of the company is constant in Canada and the United States at 186 million.
It was said by the company that in comparison to last year their per-user revenue increased by 16% which amounted to $6.42 and last year it was $5.53.
Since the third month of year2018, Facebook has been under the inquiry of FTC and the data of its 87 million users was accessed by the political firm of consultation, Cambridge Analytica.
FTC has put its biggest fine in 2012 on tech company Google, after which Google had agreed for paying a penalty of $22.5 million because of privacy practices performed by them. Facebook said that due to this matter, the range of loss will reach in between $3.0 billion and $5.0 billion.
Facebook added that this matter has always been unresolved and still there is no assurance regarding its resolving timing or terms of the final outcome.
Currently, the company is working on the massive transition from ads of the news feed as it always became a medium of growth in revenue of ads so they are planning to increase their revenue by putting new story products.
On Wednesday, the CEO of Facebook, Mark Zuckerberg said that story features of Messenger, WhatsApp, and Facebook have joined 500 million regular active users after combining with Instagram in January.