Facebook shares fall after company misses estimates for monthly users, revenue

Facebook shares fall after company misses estimates for monthly users, revenue

Facebook Inc on Tuesday missed estimates for quarterly user growth and revenue but topped profit expectations as the social network tries to recover from privacy and content scandals.

Shares of the company were down 5.2 per cent at US$138.65 in extended trading.

Net income attributable to Facebook shareholders rose to US$5.14 billion, or US$1.76 per share, in the third quarter ended Sept. 30 from US$4.7 billion, or US$1.59 per share, a year earlier.

Analysts on average expected earnings of US$1.48 per share, according to Refinitiv data.

Facebook’s monthly active users were 2.27 billion, falling short of 2.29 billion estimated by analysts.

Slowing growth after years of incredible results has been a top concern, and Facebook’s weak third-quarter user growth underscored those fears. The company had warned its profit and revenue growth could be the slowest in years.

Total revenue rose 33 per cent to US$13.73 billion, also missing estimates of US$13.78 billion.

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