Facebook, Inc. (FB), a company that develops products that enable people to connect and share with friends and family, has declined 3.73% in the premarket trading session. As a result, FB is trading at $329.12 at the time of the writing. Numerous factors are behind this decline, like reports about the possible name change, the rise of former President Donald Trump’s related Truth Social App etc. On Thursday, FB closed the day at $341.88 after increasing 0.32% during the regular trading session. Let’s discuss some recent developments related to FB.
FB copyright agreement with APIG
On Thursday, FB announced that it had signed a preliminary copyright agreement with a French News Publisher’s lobby group. The agreement paved the way for the company to pay for news content on its platform in France. The accord followed months of talks with Alliance de la Presse information generale (APIG), which is a lobby representing the leading dailies. The deal lists the principles of accord and copyright fees due to each of its members. The accord takes the form of a term sheet which would be followed by a framework agreement that would allow APIG’s members to sign individual licenses with Facebook.
Q2 2021 financial highlights
On 29th July 2021, FB reported the financial results for the second quarter of the fiscal year 2021 which ended on 30th June. The company had cash and cash equivalents of $16.18 billion on 30th June. The total assets in possession of the company at the time were $170.60 billion, while the total liabilities were $32.38 billion. The company generated total revenue of $29.07 billion during the quarter against $18.68 billion for the same period of 2020. The total costs and expenses for the period were $16.71 billion for the period against $12.72 billion for the same period of 2020. The company generated an income of $12.36 billion from the shares against $5.96 billion for the same period of 2020. The net income generated by the company during the period was $10.39 billion against $5.17 billion for the same period of 2020. The net earnings per basic and diluted share during the quarter were $3.67 and $3.61 against $1.82 and $1.80 respectively for the same period of 2020.
What’s ahead for FB?
FB stock has declined more than 7% during the last three months, mainly on the back of ongoing investigations on allegations of securities fraud. Besides, recent issues like privacy breaches have also weakened the stock to an extent. But being a social media giant, FB is expected to show tremendous performance in the future to come.