Published: Fri, February 01, 2019
Business | By Eloise Houston

Here's Why Facebook Just Hired One of Its Biggest Critics

Here's Why Facebook Just Hired One of Its Biggest Critics

Looking at its entire family of products, 2.7 billion people now use Instagram, WhatsApp, Messenger, or Facebook each month, while two billion people use at least one of these platforms every day. The company brought in $16.9 billion in revenue, up 30 percent year-over-year and beating analysts' predictions of $16.39 billion.

Revenues topped analysts' forecasts at $16.9 billion and earnings per share came in at $2.38, well above Wall Street's expectations of $2.19.

Monthly and daily users of the main Facebook app compared to last quarter were up 2.2 percent (up 9 percent from a year earlier) to 2.32 billion and 2.0 percent 1.52 billion, respectively. Facebook did say that Instagram Stories has reached 500 million daily users - half of the platform's total one billion users.

While Zuckerberg wouldn't provide too many details as to the actual plan for allowing Instagram, Messenger, and WhatsApp users to communicate, he did elaborate as to why the company is pursuing it.

The move, which is meant to boost the user engagement on the social networking platform at a time when growth has slowed down for the company, has raised several security and privacy concerns from users around the world. Facebook reported its average price per ad decreased 2 percent in the fourth quarter, with the number of ad impressions served across its platforms up 34 percent. "There's a lot more we need to figure out". The stock rose 4.3 percent in the regualr session.

The company's shares have lost a third of their value since July, when it first warned about slowing growth in revenue and operating margin.

Net profit for Facebook, which makes most of its money from online advertising, was up a strong 61 per cent from the same period a year ago.

"We've fundamentally changed how we run our company to focus on the biggest social issues, and we're investing more to build new and inspiring ways for people to connect", Mark Zuckerberg, Facebook's founder and chief executive, said in a statement.

After more than a year of criticism over its mismanagement of user data and privacy concerns, Facebook's 2018 fourth-quarter earnings report for 2018 showed ad profits did not suffer.

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