Facebook (NASDAQ:FB) stock was up 2.25% in mid-afternoon trading on October 31. The company released its third quarter results on the same day. It beat expectations, reporting adjusted earnings per share of $2.12 and revenue of $17.65 billion. Facebook was powered by a 28% jump in advertising revenue, which adds an interesting dynamic to an ongoing debate.
Twitter recently announced its decision to ban political advertising on its platform. Pressure has increased on social media giants in the wake of the 2016 election. The impact of so-called "Russian meddling" has become a focus of pundits and politicians, putting social media companies in the crosshairs. Twitter’s move has also increased pressure on Facebook.
Mark Zuckerberg has parried criticism of his platform since the 2016 election. His company has undergone reforms in order to meet the demands of its harshest critics, but the heat is on as the 2020 race ramps up. Facebook came under scrutiny after its decision to exempt ads by politicians from third-party fact-checking and from a policy that bans false statements from paid advertisements.
This successful quarter will likely strengthen Facebook’s case in resisting hardliners calling for more scrutiny in its advertising policy. Daily active users and monthly active users rose to 1.62 billion and 2.45 billion, respectively. The stock has now climbed 43.6% in 2019. Shares have come a long way from its sharp dip in the second half of 2018. Facebook looks back on track as we look ahead to the New Year.
Tech Insider
