Why Facebook is doing so great despite the trust issues and latest fine?
Yesterday, Facebook announced it was paying a record $5 billion fine to the U.S. Federal Trade Commission for violating users’ privacy.
And then, just hours later, when it released its earnings, it revealed the existence of another, separate FTC probe into the company for anti-trust violations.
But did investors flee in horror? Not a bit. In fact, the company’s shares climbed more than 3% in after-hours trading, as Fortune‘s Kevin Kelleher writes . The reason for this continued enthusiasm is that, despite repeated reputation and regulatory blows, Facebook’s underlying business keeps powering ahead:
FBs quarterly revenues, $16.9 billion, were up 28% from the prior year.
The number of monthly and daily active users was up 8% over the previous quarter.
And, discounting two extraordinary charges—one for a portion of the FTC fine and another related to tax deductions on stock options—Facebook’s earnings would have been $1.99 per share, well ahead of analysts’ consensus forecasts.