As a result, the costs of the world's largest internet network are likely to rise by 55 to 75 percent, as Facebook announced on Tuesday evening. This represents a change of direction for the Silicon Valley company. Up to now, the increase in expenses has generally been lower than the increase in turnover. This could now change, especially as Facebook is no longer expecting to grow quite as fast as in the past quarter.
Above all, analysts criticized the fact that the company only provided a forecast for costs, but not for expected revenues. This unsettled investors. Facebook shares plummeted by nine percent to 73.80 dollars in after-hours trading in the US. They had risen sharply in recent months and had just reached a record high of 81.16 dollars.
Very expensive acquisitions
Investors had also reacted positively to the company's acquisitions, although some experts had criticized the prices - for example, 22 billion dollars for the WhatsApp messaging service. However, because the Group's figures repeatedly exceeded expectations, the stock market rose steadily. On Tuesday, however, investors had already reacted with heavy selling of rival Twitter because the short messaging service is growing at a slightly slower rate.
However, Facebook founder Mark Zuckerberg does not want to be driven. The company is not under time pressure to make money quickly with the acquisitions. Significantly increasing the number of users is more important for now.
Size more important than profit for the time being
WhatsApp, for example, already has more than 500 million customers worldwide, but is anything but profitable. Facebook published figures for the acquired start-up for the first time. It reported a loss of 232.5 million dollars in the first six months - four times as much as in the previous year. Facebook also recently acquired the start-up Oculus VR for two billion dollars, which offers a new type of data goggles that allow users to immerse themselves in a virtual world while playing computer games.
According to experts, accessories such as computer watches and data glasses could become the next big trend in the technology sector after smartphones and tablet PCs.
Surprisingly strong quarter
Facebook was able to exceed market expectations in the third quarter, mainly thanks to strong demand from the advertising industry. Sales climbed by 59 percent to 3.2 billion dollars. Net profit almost doubled to 806 million dollars. Two thirds of revenue is now generated from advertising on mobile devices - Facebook is making much faster progress here than Twitter, for example. Of the 1.35 billion Facebook users, 864 million log in every day - an important argument when selling ads. For the current fourth quarter, however, Facebook only expects an increase in revenue of between 40 and 47 percent.
Twitter had already published its quarterly figures on Monday evening and was able to increase the number of users by 23 percent. However, Twitter is much smaller with 284 million active members. (SDA)
Facebook increases profit and revenue