Facebook Co-Founder and CEO Mark Zuckerberg cited Graph Search and trending topics in response to a question during the company’s fourth-quarter earnings call about his thoughts on real-time information and news as it relates to public content.
Another 70 million Facebook shares will hit the market, as the social network announced an underwritten registered public offering of class-A common stock, with 27,004,761 coming from the company itself and another 42,995,239 from certain stockholders, including 41,350,000 from Co-Founder and CEO Mark Zuckerberg.
3Q EARNINGS CALL: How Is Facebook Responding To The Mobile Transition From An Advertising Standpoint?
Facebook said in its third-quarter earnings report Wednesday that its total advertising revenue for the period was $1.8 billion, up 66 percent when compared with the year-earlier quarter, and mobile accounted for 49 percent of that revenue. During the company’s earnings call Wednesday, Chief Operating Officer Sheryl Sandberg and Chief Financial Officer David Ebersman offered more specific details.
At some point in just about every earnings call, company executives are asked about their visions for the future. Facebook Co-Founder and CEO Mark Zuckerberg’s vision for the next five years at the social network is based on “understanding the world,” and it includes advances in Graph Search, mobile applications such as Messenger, and artificial intelligence.
Facebook and its co-defendants — banks including Morgan Stanley, the lead underwriter of its initial public offering — are seeking dismissal of a lawsuit on the grounds that the social network had no obligation to publicly disclose internal projections on how increased mobile usage and product decisions might affect future revenue.
Facebook Chief Financial Officer David Ebersman spoke about a “formidable competitor” at the Morgan Stanley Technology, Media, & Telecom Conference in San Francisco Wednesday, but the social network happens to own that competitor: photo-sharing application Instagram.
Morgan Stanley, which served as one of the lead underwriters for Facebook’s much-hyped initial public offering, is coming under scrutiny by the state of Massachusetts. The state fined Morgan Stanley $5 million, claiming that the financial firm helped Facebook leak sensitive information to select companies, creating an unfair playing field for investors.
Investor Uma Swaminathan of East Brunswick, N.J., filed a claim with the arbitration unit of the Financial Industry Regulatory Authority in July, regarding Morgan Stanley’s role in Facebook’s botched initial public offering. However, there’s one problem: Morgan Stanley said Swaminathan was not one of its customers.
Facebook is tweaking its credit line due to a reduction in its potential tax liability, halving the total to $1.5 billion from $3 billion, but extending its term to three years from one year, according to reports.