Facebook Stock Reacts Positively to Mixed Q3 Results

After the market closed yesterday, Facebook released its Q3 financial results.

Overall the social network saw the number of daily active users grow minimally to 1.495 billion, a 1.36% increase from Q2. Monthly active users also grew by 1.79%, up to 2.271 billion.  

However, the key North American and European markets experienced no growth and a decline in active users respectively.

Facebook lost 1 million daily and monthly active users in Europe over the past three months, potentially as a result of one of the biggest data breaches in its history.

In terms of revenue, Facebook generated $13.78 billion, up 33% from the same time last year. This resulted in total earnings per share of $1.76.

Facebook’s stock price closed at $142.09 yesterday before the numbers were released, but despite the unconvincing results, it has reacted favourably after originally dropping as low as $138.50.

At the time of writing a Facebook share costs $153.78, a 5.15% increase from yesterday’s close.

During the accompanying earnings call, Mark Zuckerberg confirmed reports that Facebook’s News Feed is being used less and less.

He told investors that a total of 100 billion private messages are being sent every day on Messenger, WhatsApp and Instagram. Furthermore, 1 billion Stories are being uploaded across the three platforms daily.

Read more here.