Facebook (NASDAQ: FB) shares whipsawed in after-hours trading, following a mixed third-quarter earnings report Tuesday.
The results fell short when it came to revenue, daily active user and monthly active user estimates in the company's latest earnings report, despite exceeding analyst expectations on earnings per share. Facebook also told investors to expect increased expenses in 2019.
The company reported its third-quarter earnings after the bell on Tuesday, which showed earnings per share at $1.76 vs $1.47 estimated.
Revenue came in at $13.73 billion vs. $13.78 billion estimated.
Moreover, daily active users were at 1.49 billion vs. 1.51 billion estimated. Monthly active users numbered 2.27 billion vs. 2.29 billion estimated. Average revenue per user matched the $6.09 estimated, per 2.29 billion.
Facebook's shares were down as much as 6% and up as much as 5% after hours as investors dissected CEO Mark Zuckerberg's comments on future spending and growth. They finally settled in positive range, up about 3%, after the company's earnings call concluded.
Those shares thundered higher $8.26, or 5.7%, to $154.48, soon after Wednesday’s opening bell.
On the call, Zuckerberg said the company plans to invest significantly in the business in 2019 as it focuses on building out new products such as Facebook Watch, Instagram TV and Facebook Marketplace and improving cyber security. Facebook CFO David Wehner said 2019 total expenses will grow 40% to 50% compared to full-year 2018.
