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Facebook surges after sending an optimized message to Wall Street



The Facebook Inc. message for investors is clear: the business is healthy and growing.

In the first quarter, the social network reported revenue growth of 49 percent, outstripping analyst estimates. Promoted advertising company. While Facebook is eliminating major issues such as election manipulation and privacy – issues that have damaged the company's image – "we'll be investing even more in building the experience people bring to Facebook," said Chief Executive Officer Mark Zuckerberg in a teleconference on Tuesday Wednesday.

Stocks in Facebook were up 6.3 percent to $ 169.83 at 5:25 pm on New York Thursday. The stock has fallen by about 14 percent since the release of the new data breach reports in March.

At the conference call, executives used the word "proud" five times. "We are proud of the ad model we have developed," said Chief Operating Officer Sheryl Sandberg. By tracking user activity, the company's marketing company can offer relevant promotions and ensure that Facebook remains free to its users. And there are many more ways to further expand the Facebook advertising industry, such as via the photo sharing app Instagram.

After a month of uproar and attention from the legislature, when the company triggered a crunchy tone about data gaps Englisch: www.germnews.de/archive/en- Calm the popularity of Facebook and the strength of its advertiser. The numbers did most of the work. Quarterly revenues increased to nearly $ 1

2 billion and monthly user growth also exceeded estimates. Facebook said it now has 1.45 billion daily users, matching estimates on this key measure of engagement. Stocks rose more than 5 percent in extended trading.

The results were "a relief," said Daniel Ives, an analyst at GBH Insights.

Facebook spent the last month declaring, apologizing and tweaking its rules for an app The developer shared 87 million users' personal information with political consultancy Cambridge Analytica, which it may not have deleted. This crisis, which resulted in a # deleteFacebook campaign and a congressional request for Zuckerberg, arrived towards the end of the quarter – its impact has had little visible impact so far.

"Facebook continues to have a long-running piste ahead" Mark Mahaney, an analyst at RBC Capital Markets, said in a statement to investors. "Marketers continued to invest in record highs on the platform, and we believe that revenue-generating actions are louder than words."

The company's most important social network added users in North America and reversed the decline in the fourth Quarter took place for the first time. Monthly active users in the US and Canada increased to 241 million, while daily active users rose to 185 million in the first quarter.

Net income for the first quarter increased 63 percent to $ 4.99 billion, or $ 1.69 per share, ahead of $ 1.35 a share analysts predicted. Investments totaled $ 2.81 billion for the quarter, as Facebook, based in Menlo Park, California, is increasing its spending on security, video content and new technology. The company also announced that it has increased its share repurchase program by $ 9 billion.

Facebook still has a dominant position in mobile advertising, in addition to Alphabet Inc's Google. This has led the company to raise the price of ads – Facebook said that Handy recently accounted for 91 percent of ad revenue, compared to about 85 percent a year ago. The company also has many properties where it earns more money beyond the social network, such as Instagram, which is expected to reach one billion users this year, and popular WhatsApp and Messenger chat apps.

The company was internally shaken by the data crisis, which resulted in Facebook launching a review of all of its products and evaluating how much information it should share with app developers, researchers and advertisers. Meanwhile, it is working on new data protection rules in Europe, the so-called General Data Protection Regulation, which according to Facebook could reduce the number of monthly and daily users from this region.

Facebook argued that the GDPR in Europe has an impact on the entire advertising industry, it is difficult to predict the impact – even on users outside Europe, where Facebook will introduce the same protective measures.

"While we do not expect these changes to significantly impact advertising revenue, there is potential for some impact," said CFO David Wehner.

The company may no longer be able to build products quickly and roll them out without concern for their potential negative impact. Zuckerberg said that the company had failed to adequately assess its responsibility to users. This year, Facebook will be staffed to quickly review potentially damaging content and better understand potential security threats. And it has introduced some products, including a home speaker system, while performing a deeper security check.

Facebook announced in January that it optimized its news feed algorithm to emphasize posts from friends and family, at the expense of viral messages and videos. This could reduce the time people spend on the site, the company said.

Wehner declined to provide updated figures for this measure and said they were not so important anymore.

"We're not really optimizing the business on time, but rather the kind of quality of conversations and connections," he said.


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