Facebook expected to report 1st drop in profits in nearly 4 years
MANILA, Philippines - Facebook this week is expected to report a drop in profits for Q1 2019 after dealing with a number of privacy breaches and fake news scandals.
According to The Guardian, analysts predict the firm’s net profits to drop to $4.7 billion in the 1st quarter, from last year’s $5 billion.
If their predictions are true, this would reportedly mark the first decline in profits for Facebook since mid-2015, ending a nearly 4-year streak of growing profits.
It could also be a sign that the platform’s problems have finally caught up to it financially.
With increased pressure from regulators, CEO Mark Zuckerberg promised major reforms that would address illegal content, fake news, data security, and privacy concerns on platform.
These reforms will surely kick up Facebook’s expenses so it’s likely for them to see a drop in their annual profits this year, as analysts claim.
Facebook, however, continues to attract users and advertisers to its platform, which is expected to help it rake in over $15 billion in revenue versus last year’s $12 billion. – Rappler.com