Briefing

Facebook jumps seven per cent after earnings beat

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The social media giant exceeded analysts’ consensus estimates on earnings, revenue, and active users. The company’s shares rose in after-hours trading. The company reported US$16.91 billion in revenue, well above the US$16.39 billion estimated by some analysts. (CNBC)

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Talking point: The overperformance isn’t a surprise—Facebook missed consensus revenue estimates in the last two quarters, but exceeded them for the 10 before that, according to Goldman Sachs. That’s despite the company facing criticism for its handling of users’ security and privacy concerns over the last year; in July 2018, it said it expected sales growth rates to slow as it focused on privacy. And, despite campaigns exhorting users to quit the platform, both daily and monthly active users rose quarter-over-quarter.