The world’s largest technology companies have continued to churn out strong numbers in the fourth quarter, with FANG stocks (Facebook, Amazon, Netflix, Alphabet) pushing the US market to new highs in the first month of 2018. (Reading time 3:30 mins)
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Facebook crushed fourth quarter earnings and revenue expectations – announcing revenue growth of 47.3% to US$12.97 billion and earnings growth of 83.5% to US$4.27 billion.
The company also reported monthly active users of 2.13 billion, and daily active users of 1.40 billion. Average revenue per user increased across each of the major geographic areas the company operates in, but rose sharply in Canada and North America. Across these regions, average revenue per user reached US$26.76. This means there has been a year-over-year increase of 35%.
Despite standout financial performance, Facebook experienced a marked decline in usage of its service over the holiday period. The amount of time users are spending on the site declined by 50 million hours a day.
On the company’s conference call, CEO Mark Zuckerberg and his management team reiterated the social media company’s efforts to make Facebook a place where its users could spend “meaningful” time. In addition to a crack down on problematic content and misinformation that has spread on the platform.
Read more about Facebook’s earnings results and get up to speed on results announced by Amazon, Netflix and Alphabet (Google).