FACEBOOK has recorded record profits despite a year riddled with devastating scandals and crushing high-profile resignations.
The ominous tech titan’s value ballooned by a staggering £34billion as millions of new users continue to flock to Instagram, WhatsApp and Facebook.
Facebook has recorded record profits[/caption]
Slippery CEO Mark Zuckerberg admitted his brainchild is battling “important opportunities and challenges” and that it still has “a lot of work to do”.
As markets closed yesterday, Facebook profits soared by 61% from a year ago to £5.2billion, with user growth skyrocketing across every continent.
The company is now valued at £329billion – meaning it’s worth more than Snapchat (£8.5billion), Twitter (£24.5billion), Netflix (£112billion), Nintendo (£34billion) and Sony (£49billion) combined.
But despite yesterday’s gains, Facebook is still a long way off the highs it reached in July last year.
1.5billion people are still flocking to the platform every day[/caption]
Back then, the social media behemoth was valued at a mammoth £496billion, just four months after it was hit by the calamitous Cambridge Analytica scandal.
That means today Facebook’s value is around a third less than it was just six months ago, a slump of £167billion.
Speaking to investors yesterday, Zuckerberg praised Facebook’s recent move to throw cash at security on the site.
He claimed the project had “reduced viral videos” and cleaned up fake accounts on the platform.
The firm has been rocked by scandals over the past 12 months[/caption]
“We had a number of substantive issues that we needed to address,” Zuckerberg explained in a call to investors after markets closed yesterday.
Some of these “increased costs and reduced revenues,” he added.
“But I believe these investments are the right thing to do and will make our business stronger over the long term.”
The geeky billionaire also addressed a bombshell New York Times report last week, which said Facebook plans to merge the messaging systems of WhatsApp, Messenger and Instagram.
Facebook plans to merge the messaging services of Instagram, WhatsApp and Messenger in future[/caption]
The shock decision would mean that all of Facebook’s sprawling social media properties would be integrated for the first time.
“We’re really early in thinking through this,” Zuckerberg explained.
“There’s a lot more we need to figure out before we finalise the plan.
“This will be a long term project that will be – to whatever extent we end up doing it – a 2020 thing or beyond.”
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Following last week’s revelations about the merger, Matthew Green, cryptography professor at Johns Hopkins University, urged people to “move important conversations off those services”.
Facebook also landed in hot water this week when an investigation found it was paying children £15 a month to install a ‘spying app’ that monitors everything they do.
Last month, it came to light that Facebook secretly let Netflix and Spotify read your private messages.
Are you shocked by Facebook’s enormous profits? Let us know in the comments!