Through the looking glass: The biggest takeaway for Wednesday is that Facebook will survive – and even thrive – in the wake of its multiple privacy scandals.
Mere hours after receiving a record $5 billion fine from the FTC for repeated privacy violations, the company reported second quarter earnings that topped Wall Street expectations. For the three month period ending June 30, 2019, Facebook generated revenue of $16.9 billion – a 28 percent increase compared to the same period a year earlier. The majority of its revenue - $16.62 billion – came from advertising.
Diluted earnings per share checked in at $0.91 although had it not been for the recent FTC fine, Facebook said its EPS would have been $1.99.
Despite the record-setting $5 billion fine from the FTC, it was a pretty alright day for Facebook on the stock exchange. Share value climbed 1.14 percent in day trading and is up another 1.19 percent in after-hours trading.
Elsewhere, Facebook reported that monthly active users for the period were 2.41 billion, an eight percent year-over-year increase. Daily active users checked in a 1.59 billion on average, again, an increase of eight percent compared to the year-ago period. Facebook’s head count at the end of the period was 39,651 which is up 31 percent compared to the same period in 2018.
Masthead credit: Blind folded Lady Justice by Cryptographer