Facebook Inc has reported better-than-expected earnings in the third quarter during the most critical periods in its history although revenue fell short of the estimated.
Shares of Facebook Ins have soared on the news of the higher earnings.
The tech giant reported $3.22 a share on earnings with a revenue of $29 billion. While the analysts forecasted $3.19 a share with a revenue of $29.6 billion.
Although that US teenager “time spent” on Facebook went down 16% year-over-year, and that young users are also spending 5% less time on the platform, the daily active users of Facebook have also increased to 1.93 billion even though the analysts expected only 1.93 billion.
The leaked documents showed that 32% of girls surveyed on Instagram reported that when they felt bad about their bodies which hint that this is the reason behind the sudden halt of the Instagram kids app. The most shocking revelation was the fact that Facebook’s algorithm is designed to intentionally make users angry by showing them things that upsets them.
Zuckerberg commented:
“Over the last decade as the audience that uses our apps has expanded so much and we focus on serving everyone, our services have gotten dialed to be the best for the most people who use them rather than specifically for young adults,”
These good numbers come in a time where the social media giant is facing the scandal of leaked by a whistleblower, Frances Haugen. The so-called Facebook Papers reveal that the company has been aware of the problems for years, raising questions over whether it has done enough to address these issues.
Lately, Facebook is reportedly planning to rebrand its platform by changing the company name next week to a name that reflects the shift of focus on its latest project 'metaverse', according to The Verge.
The Verge also reported that CEO Mark Zuckerberg will reveal the new company name at the company’s annual Connect conference on October 28th. This rebrand will create an umbrella company for all Facebook's products positioning Facebook itself, Instagram, WhatsApp, and Oculus under it.
