27 Jul Privacy Improvements to Cut Into Facebook Profits for Years
Facebook executives said this week that the costs of improving privacy safeguards are likely to cut into profits for several years. It is said that the announcement had caused the tech giant’s stock to tumble as much as a quarter of their value last Wednesday.
Chief Financial Officer David Wehner told investors that operating profit margin, which declined to 44% from 47% in the second quarter from a year ago, will continue to go down to the “mid-30s” for more than two years.
The falling stock price left Facebook with $150 billion less in market capitalization, erasing gains since April.