Facebook: Profits rise sharply despite scandal

On April 25, Facebook's share price rose after its social networking site saw profits rise 63 percent and users tended to go up despite a personal information scandal. user.

At the close of trading, the shares of the social network jumped 7.1 percent to $ 171, after a month of steep declines as a result of the scandal of Cambridge Analytica's political consultancy collecting unauthorized Facebook users. Facebook's earnings in the first quarter surpassed analysts' forecasts, up 49% from the previous quarter. The main reason is that the mobile advertising business has grown after Facebook added content to the video. Meanwhile, the number of users in the first quarter of 2018 rose 13% over the same period last year to 2.2 billion. The results are considered "bright spots" for Facebook in the context of the company has received many negative reviews about how the processing of personal information, the role of this social network in the election and lit force in developing countries. By leveraging the benefits of personalized ad sales, users in the past few quarters have demonstrated the sustainability of the current business model as users continue to see the message boards. (News Feed) and video clips. To ensure that users do not leave the social network after the scandal, Facebook finance chief David Wehner said the company's spending this year will increase from 45 to 60 percent. Much of this spending will focus on safety and security issues including fake account removals, hostile speeches, and videos with violent content. By the end of the first quarter, Facebook had 27,742 employees, up 48% from the same period last year. Wedbush Securities analyst Michael Pachter said that as long as Facebook profits are growing fast, investors will be willing to accept higher costs to ensure privacy. Net income for Facebook shareholders in the first quarter rose to $ 4.99 billion, or $ 1.69 per share, higher than $ 3.06 billion ($ 1.04 per share) a year. Facebook's total revenue is about $ 11.97 billion, higher than analysts' estimates of $ 11.41 billion. Facebook is facing a scandal of information about 87 million users for Cambridge Analytica. The scandal has not only forced Facebook from US, UK and European authorities, but is also facing a wave of strong boycotts around the world. After the scandal was discovered, Facebook lost more than $ 50 billion in market value. In the face of these pressures, Facebook has made a number of changes that make it easy to store and use personal information for consumers.