NEW YORK, NY / ACCESSWIRE / December 7, 2018 / Facebook shares were up modestly as the company’s CEO came to the defense of the company against a UK parliamentary report accusing it of selling people’s data. Shares of Momo Inc. were tumbling on poor fourth quarter guidance.
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Facebook, Inc. shares were up 1.23% on about 27.5 million shares traded on Thursday. The social media giant responded to a UK parliamentary report that claims the company entered “whitelisting” agreements allowing select third-party companies to maintain full access to users’ friends data after it supposedly ended the practice in 2015. Facebook said "We've never sold people's data." Company CEO Mark Zuckerberg said in a post, "Like any organization, we had a lot of internal discussion and people raised different ideas." He also wrote, "Ultimately, we decided on a model where we continued to provide the developer platform for free and developers could choose to buy ads if they wanted." He explained, "To be clear, that’s different from selling people’s data. We’ve never sold anyone’s data.” Facebook also lost its #1 standing as the top-rated employer based on Glassdoor's 2019 list of the "Best Places to Work." The company is now ranked seventh on the list.
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Momo Inc. shares were down 14.64% on Thursday with almost 13.5 million shares traded. The stock sank after the company reported third quarter financial results. While third quarter results were in line with what analysts were expecting, it was the company's forecast for the fourth quarter that troubled traders. Revenue for the third quarter was $536 million, a growth of 51% and better than the $535.3 million that analysts were expecting. Non-GAAP net income was $114.3 million, or $0.53 per American depositary share (ADS), while analysts were waiting for $0.53 per ADS in adjusted profits. CEO Yan Tang said, "I am pleased that we delivered solid operational and financial results for the quarter. At the same time we continued to push forward on product and operational fronts, in order to build uplonger term growth drivers as we start to look beyond 2018 into next year." Looking forward, the company expects revenue in the fourth quarter to be in the range of 3.65 billion yuan to 3.75 billion yuan ($531 million to $545 million). Analysts were looking for 3.8 billion yuan ($555 million) in sales.
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