Facebook share on the rise after the company announces that it will increase its share buybacks, begins to report on the success of virtual reality products

New York

Community service Facebook the stock rose in Wall Street aftermarket despite its third-quarter revenue falling short of analysts ’forecasts.

However, Facebook’s result exceeded analysts’ forecasts. Facebook’s share was up 3.4 percent at 23:49 Finnish time.

The company said it plans to increase its share buyback program by $ 50 billion.

The service’s earnings per share were $ 3.22 after the analysis service Refinitivin an analyst forecast compiled by the company posted a $ 3.19 result. The company had revenue of $ 29.01 billion, while analysts expected revenue of $ 29.57 billion.

Net sales increased by 35 percent year-on-year and net profit by 17 percent.

Facebook said it will begin reporting separately on the success of its “Facebook Reality Labs” unit starting in the fourth quarter. The unit includes, for example, augmented real products and virtual reality products.

The company expects its investment in these devices and virtual reality to reduce the company’s operating profit this year by about $ 10 billion.

The monthly number of users of the community service was 2.91 billion users in the third quarter, while analysts forecast a monthly number of users of 2.93 billion. The number of daily users was 1.93 billion, which met analysts ’expectations.

The average revenue per user was $ 10.00, compared to analysts ’forecast of $ 10.15.

Social media also owns popular services such as the messaging and calling app Whatsapp, the messaging service Messenger, and the image sharing service Instagram.

Facebook forecasts revenue of $ 31.5 to $ 34 billion for the fourth quarter, while analysts forecast revenue of $ 34.8 billion. Facebook has said in the past that it is preparing for its advertising revenue to suffer from Apple’s changes to the privacy policy on its mobile devices.

With the changes, owners of Apple devices will receive a notification on their phones after the latest iOS 14 system update, which will allow the user to decide whether Facebook or another company, for example, can use the information they collect about the user in other company-owned applications.

Facebook closed the rise on Monday at 1.3 percent, although an internal report taken over by news agency Bloomberg said Facebook’s popularity has declined, especially among millennials and the Z generation. According to a report published in March, young people spend less time on the platform than a year ago, and an ever smaller proportion of young people register as users of the service. The company’s share has also been weighed down by the fact that the company’s former product manager Frances Haugen leaked information to the media in the fall about the company’s allegedly unethical practices.

Source: Arvopaperi by www.arvopaperi.fi.

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