Facebook: Security investments will hurt profits


Facebook (NASDAQ:FB) reported higher third-quarter earnings than expected Wednesday, sending shares higher, though CEO Mark Zuckerberg said investments in security will affect its profitability.

Facebook's top lawyer has spent the past two days testifying to Congress alongside executives from Twitter (NYSE:TWTR) and Google (NASDAQ:GOOGL) about Russia-linked accounts' manipulation of their platforms.

The social network's quarterly profit jumped 79% year-over-year to $4.71 billion. It earned $1.59 per share on an adjusted basis. Analysts were looking for $1.28 per share.

Revenue surged 47% to $10.33 billion, also topping Wall Street’s estimate of $9.84 billion.

Facebook continued racking up users. Monthly users rose 16 percent to 2.07 billion. Daily users also climbed 16 percent to 1.37 billion.

Revenue from mobile ads made up 88 percent of total ad revenue, up from 84 percent a year ago.

Facebook shares added 1.1 percent to $184.60 in after-hours trading. Through the close of regular-session trading Wednesday, the stock was up 59 percent since the beginning of the year, while the Standard & Poor's 500 index has increased 15 percent.

Facebook shares fell 1.7% to $179.53 in after-hours trading.

The Associated Press contributed to this report.