Zuckerberg’s fortune fell $ 5 billion after Facebook’s quarterly report

Zuckerberg’s fortune fell $ 5 billion after Facebook’s quarterly report

After the close of trading on Wednesday, January 29, the shares of the American company Facebook fell by more than 7% against the background of the publication of reports for the fourth quarter of 2019, writes the Financial Times.

Revenues in the last quarter of 2019 increased by 25% compared to the same period in 2018 – to a record $ 21.1 billion. The main growth was provided by advertising revenue. Analysts had expected revenue of $ 20.9 billion.

At the same time, revenue growth was the slowest since the company’s IPO in May 2012. For example, in the fourth quarter of 2018, sales increased by 30%.

The company’s profit in 2019 decreased by 16% to $ 18.4 billion. Annual revenue grew by 27% to $ 70.7 billion. At the same time, expenses grew faster. Over the year, they increased by 51%, to $ 46.7 billion. This is due to the cost of solving legal issues. The company announced on January 29 that it agreed to pay $ 550 million to settle a lawsuit in Illinois regarding the use of photographs for face recognition technology.

David Vener, Facebook CFO, said he expected a slowdown in growth in the next quarter, citing “the maturity of our business”, as well as legislative restrictions related to privacy protection and advertising targeting.

During the auction on Wednesday, Facebook shares rose to $ 224.4, but after the publication of financial statements fell to $ 207.05.

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