Facebook Posts Low Profits Amid Criticism Surrounding Misinformation and Protection of User Privacy

by Ralf Jennings

Facebook was already caught in a tiff regarding their privacy policies as they introduced unfiltered ad campaigns during the election season. While a big tech company like Facebook will survive minor changes involving their policies, Facebook has posted a slightly lower profit than expected. While it is because of their “No cuckold” attitude towards changing their policies or their slight disregard towards public opinion, maybe Facebook should change their strategies in order to recoup their losses.

Around 3 billion people use Facebook, Instagram, WhatsApp or The Facebook Messenger every month giving the firm a potentially limitless digital space for exploration. The company is now looking to be able to send messages across their apps without having to switch applications, which will be a huge breakthrough.

On Dec 31st, Facebook raked in $21.08 billion in revenue which surpassed the $20.89 billion mark predicted by analysts. While Facebook does surpass various analyst’s predictions, it grew by a margin of 25% instead of the expected 30%. However, the social network earned a profit of $2.56 per share instead of the predicted $2.52 and posted a profit of $7.35 billion which was a jump of 7% from 2018.

While these numbers are huge and give Facebook a strong financial edge over their competitors, the slow growth might indicate that Facebook might have to take a lighter stance towards public privacy and user safety under their cloak. Furthermore,  the world’s biggest networking site has refused to buckle under the public’s opinion surrounding free speech, encryption and targeted ads.

On Wednesday during a call with investors, Zuckerberg shared his plan for the decade will be for the company to be understood rather than liked. “These positions aren’t always going to be popular, but I think it’s important for us to take these debates head-on,” he said during the earnings call.

Ralf Jennings

I have been covering reports on everything relating to American politics and economic trends in the U.S. since 1999. After my graduation from college, I began to work as a part-time writer for a local magazine and this experience helped me build my writing and reporting skills. I eventually got aRead more...