Facebook results hit by big spending

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Facebook posting its slowest quarterly growth in two years on Wednesday (Apr 22). Big spending on research and development eating into profits. Heavy investment in side projects like WhatsApp,

Facebook results hit by big spending

Facebook posting its slowest quarterly growth in two years on Wednesday (Apr 22).

Big spending on research and development eating into profits.

Heavy investment in side projects like WhatsApp, Instagram, and virtual reality headset maker Oculus Rift pushing expenses up more than 80 percent.

Some say Facebook shelled out nearly 10 times what Apple did on R&D for the same period.

Revenue came in at 3.5 billion dollars for the first three months of 2015 – a 42 percent jump in growth compared to last year.

Analysts say it’s still an astonishing growth rate for such a large company.

But sales were growing at 70 percent a year ago.

Today’s figures bound to leave investors a little disappointed.

That showing in after-market trading with shares falling two percent.

There’s good news mixed in – new users are still signing up and more of them are logging on through their smartphones, a boost for mobile ad sales.

Analysts say as long as all the R&D spending pays off with happy users, investors will keep on liking the company for years to come.

ENDS

Tags : Spending, Results, Facebook

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