More than just a thumbs up for Facebook. Third quarter profits soared 79 percent
And total revenue increased 47 percent to $10.33 billion.
The bumper results partly thanks to money pouring into its advertising offerings.
And bode well for the US tech sector.
Commerzbank Global Financial Economist, Peter Dixon, said, “Tech companies in the US for example are trading on P E multiples in excess of 30. In an environment where investors are chasing yield, the tech sector has delivered, it has delivered returns. And of course investors expect that to continue for some time to come, at least another 12 months, maybe slightly longer.”
It comes amid a political storm in the U.S. over how Facebook, Twitter and Alphabet’s Google handle false news stories.
Facebook’s faced criticism from Washington this week over its failure to prevent Russian operatives from using the platform for election meddling.
The company plans to add 10,000 people to review content on the network
But the extra spending will likely hit profits, with expenses expected to grow by 45 percent to 60 percent next year.
But the results reveal the company is largely insulated from the political criticism.
Total advertising revenue for the quarter rose 49 percent to over $10.14 billion
Facebook has said that people in Russia bought at least 3,000 U.S. political ads, which were seen by millions of Americans over two years.