Facebook's stock dips after Zuck warns Russian crackdown will hurt profits

Facebook's stock dips after Zuck warns Russian crackdown will hurt profits

Amid the distraction of Facebook's blockbuster earnings this week, the company quietly admitted to hosting more phony accounts than previously revealed.

Facebook revenues grew 47 percent year-on-year and it peaked during the third quarter of 2017, reaching more than $10 billion, Facebook founder Mark Zuckerberg said in a post on the social media platform. CEO Mark Zuckerberg claimed that focusing on security will definitely have an impact on the company's bottom line, stating that "We're serious about preventing abuse on our platforms". The latest user numbers: Facebook daily active users were up 16% to 1.37bn, while monthly active users were up 16% to 2.07bn.

Zuckerberg isn't carried away by the flying success of Facebook as a for-profit business. "But none of that matters if our services are used in ways that don't bring people closer together". Expenses rose to $5.2 billion from $3.9 billion in the same quarter past year, and headcount at the company was up 47 percent to 23,165 employees.

Appearing in front of a Senate judiciary subcommittee, Facebook confirmed reports that ads bought in Russian Federation were delivered to an estimated 126m people during last year's election campaign.

On Tuesday, Facebook's general counsel Colin Stretch testified to Congress that 126 million U.S. users may have seen fake news or political advertisements bought by Russian Federation in 2016.

He affirmed that protecting the Facebook's community is more important than maximizing profits and that the company will be investing so much in security.

"For those who have followed Facebook, you know that when we set our minds to something, we're going to do it". Critics say a focus on engagement as the paramount metric and on connecting people as an end in itself are what made Facebook such a powerful medium for disinformation. This includes the already growing video sharing activities on Facebook's Instagram and WhatsApp, and content consuming through the recently-launched Watch tab, where users can watch shows like on traditional television.

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