Facebook Inc might be facing a record-setting fine from U.S. regulators for privacy violation, but Wall Street has now warned about possible penalty after the company added users and beaten profit expectations for the first quarter.
For just over a year, Facebook has been facing probes launched on both sides of the Atlantic after surfacing of a scandal of improperly sharing data with political consultancy firm Cambridge Analytica, which also includes a U.S. Federal Trade Commission (FTC) investigation looking into the matter whether the tech giant is in violation of a 2011 commitment over privacy of its users.
In the midst of these probes, some companies came on pulling off their ads from the social network and even users tweeted to delete Facebook accounts, and in less than a month investors also found taking off about $70 billion from the market value of Facebook after admittance by the executive that the costs of setting off all regulations could increase.
But shares of the Facebook came surging by 6 percent on last Thursday, a day after reporting quarterly results with profits surpassed the Wall Street estimates and unveiling that it has set aside an amount of $3 billion to cover settlements with the U.S. regulators excluding which company would be in a position of beating earnings estimates also; and the company current worth is now $40 billion more than it was before the eruption of scandal.
Also in the first quarter, Facebook’s namesake app booked a rise of 8 percent in its users from the number of users it had in the same quarter a year ago.
The company reported more than a billion users now held by its Instagram app while Facebook own user’s count was 2.38 billion. Similarly number of people using its Whatsapp and Messenger services are also estimated to be about a billion.