Rather incredibly, Facebook reported an increase in revenue of no less than 42 per cent over the same quarter last year, and a rise in profits of 31 per cent.
Read more: DEBATE: Should investors be concerned about Facebook’s prospects?
Investors focused on the less-than-expected growth in new users, and on the company’s projection that its profit margins will fall in 2019 – from its current 44 per cent to just the mid-30s.
A wholly plausible alternative story would have been that the company continued to grow very strongly, but there would be some slow-down from the recent stratospheric rates of expansion.
The facts could have been used in support of either of these narratives.
The company reported a drop of one million users following its action to delete fake and offensive accounts.