Facebook's $5 Billion Problem
Legal Bill Cuts FB Profit in Half
Facebook reported earnings last Wednesday. And at first glance, they looked pretty good.
Revenue and earnings per share (EPS) beat expectations. Ad revenues rose 26% to $14.9 billion. Daily average users (DAUs) and monthly average users (MAUs) both grew pretty much in line with expectations.
And CEO Mark Zuckerberg candidly announced that the company “had a good quarter and [its] business and community continue to grow.”
Sounds pretty good, right? The markets seemed to think so. Shares jumped about 7%, from $182 to $195.
But as I write this on Thursday, they’re starting to give up that gain. And there’s reason to think they’ll drop further.
You see, hidden in Facebook’s earnings report was a pretty massive expense. It was so big that while revenues grew 26% at the social giant, net income fell more than 50%.
That’s because Facebook and its CEO are in some serious trouble. And they’re setting aside billions to defend against it.
The People vs. Mark Zuckerberg
Facebook earmarked around $3 billion last quarter to continue its fight with numerous national and state governments.
It’s currently dealing with the FTC, Canada’s privacy minister, Ireland’s privacy regulator, and New York’s attorney general.
The $3 billion could easily grow to $5 billion dealing with the FTC alone. So it’s no wonder those legal expenses and settlement costs are cutting into the bottom line.
They’re all after Facebook and Zuckerberg for the same thing, too: not respecting people’s privacy.
But does that really come as a surprise from the guy who once called his customers “dumb f***s” for trusting him with their information?
Nope. Not at all. Zuckerberg has proven time and again what an arrogant jerk he really is.
He’s got no problem exploiting Facebook’s platform to spread misinformation. He’ll use it to attack individuals, corporations, and entire groups. He really doesn’t care who suffers.
He just wants to prove he’s powerful and can get away with it.
And that’s why legal woes aren’t the only thing Mark Zuckerberg has to worry about.
And they aren’t even close to the most expensive problem Facebook is going to have.
The Plan to Take Down Facebook
You see, there are a lot of people out there who feel the same way about Mark Zuckerberg and his complete lack of respect for the rest of humanity.
And some of the most powerful of them have come together to create a plan to take the internet back. They want to take the power away from this technocrat who wields it like a dictator.
There are four main players. Three are multibillionaires who are pumping massive amounts of their own and their companies’ fortunes into a technology that will help unseat King Mark.
The fourth is perhaps the most powerful politician in Washington, D.C., if not the world. And he’s using all his power and connections to make backdoor deals to get the plan moving and keep it going strong.
They're so committed that they’re all willing to pay people to help them with the plan, just to take back the internet faster.
Thousands of others have already joined the ranks to unseat the “Fuhrer of Facebook.” And every one of them is already cashing checks, some as big as $14,900.
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Real People, Real Profits
Briton Ryle and I uncovered the plan a few months ago and let the members of our investing community, The Wealth Advisory, know to get on board. Now they’re cashing checks, too.
And they’ve been writing in to tell us how great this opportunity is...
Lisa wrote in to tell us she’ll be retiring early thanks to all the money she’s making now:
The Wealth Advisory portfolio is a gold mine and I couldn't be happier.
And Roger gave us credit for rescuing his investments and giving him a shot at retirement again:
Your recommendation has actually saved my portfolio!
Jorge sent us a video where he thanked us for helping him take his financial future into his own hands. He said that he finally felt confident he’d be able to achieve the retirement he’d prayed for.
Those are just a few of the notes we’ve received. There are lots more. And they’re all saying the same thing.
I’m not telling you this to make myself feel good or boost my ego. I just want you to see that real people like you are already making the kinds of profits that have changed their lives.
And that’s because I want you to have to ability to change yours, too, if you want to. That's the reason I come into work every day. I love hearing from folks I've helped turn things around for.
It might sound old-fashioned, but I really love helping people. It makes me feel good.
And there’s really only one thing that gives you the power to change your destiny.
The Only Real Freedom
That’s financial independence. And the path to that starts by getting your money working for you.
That’s the opportunity we offer at The Wealth Advisory. The payments you’ll receive as your part of the plan to take down Facebook are only a part of the wealth we’re helping our members secure.
But even those are enough to set you off on the path to real freedom and the future you dream of.
And you can get started collecting them as soon as May 9. You just have to get on the list before then, and you’ll be on the path to the future you choose, not the one you’re forced into.
So click here to get started collecting your payments for helping bring about change on the web.
But don’t wait too long. By the time I’m writing my Wealth Daily article next week, the payments will be hitting bank accounts.
So click here now and make sure you get your piece of the prize.
To your wealth,
After graduating Cum Laude in finance and economics, Jason analyzed complex projects and budgets for the U.S. Army. Then, at Morgan Stanley, he led the assistants' team for the North American repo sales desk, responsible for hundreds of multibillion-dollar trades every day. Jason is the assistant editor for The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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