Stock Focus: Facebook Inc (NASDAQ FB) To Continue Spending Aggressively

Technology Stocks News 1

Facebook Inc (NASDAQ FB) CEO Mark Zuckerberg stated that he will continue to spend profusely on new technologies in the future, and also explained how this quarter’s numbers was impacted by mega-deals such as the WhatsApp acquisition. Facebook is asking analysts and investors to take a long-term perspective.

Revenue for Facebook (NASDAQ FB) increased 59% to $3.2 billion in the third-quarter, outperforming competitors such as Google Inc. in mobile advertising. However, costs surged 41% during the quarter in which Facebook Inc (NASDAQ FB) hired approximately 1,200 new employees and major costs were incurred with the acquisition of WhatsApp at $19 billion and the $2 billion purchase of virtual-reality headset maker Oculus Rift.

While talking to analysts in a conference call, finance chief David Wehner said that he expects Facebook to bear higher expenses than normal in future quarters due to a significant investment in both engineering talent and acquisitions. Wehner is expecting an increase of 75% in the costs for the year.

Facebook Inc: Spending Spree is On

Wehner along with other Facebook Inc (NASDAQ FB) executives asked analysts to stay focused on the long-term and not just quarterly financial results. Zuckerberg stressed that the company’s long-term goals run for more than a decade and require aggressive investing.

Zuckerberg also talked about virtual reality, artificial intelligence and connecting people from the isolated parts of the world. He added, “Products don’t really get that interesting to turn into businesses until they have about a billion people using them.” Zuckerberg said that the social networking website is working on various services that could reach that threshold in a “five-year time frame.”

[grabpress_video guid=f8fc41f7805249f9e8d2ae7aa80abe6268efc01e embed_id=2151919]

Facebook Inc (NASDAQ FB) Business News

Facebook Inc (NASDAQ FB) is not alone in its high-stakes venture. Other cash-rich firms such as Google Inc (NASDAQ GOOG), Amazon.com, Inc (NASDAQ AMZN) and Apple Inc (NASDAQ AAPL) are also investing aggressively in new acquisitions or research and development to expand their business and diversify to locate new streams of revenue, says a report from the Wall Street Journal. For instance, Google is entering aggressively into smartphone, streaming video devices, eyewear, artificial intelligence and transportation.

Thanks for visiting the TechNews.org website. Be sure to catch all Facebook Inc (NASDAQ FB) financial news, bookmark us and check all the videos and news articles regarding the Facebook stock.

Signup for free to be the first to receive exclusive free links. Now in your mailbox!
Join over 15,000 subscribers
Send me links

Your information will not be shared to anyone