Their stock is currently up by about 8% after-hours on their earnings and this news. So the announcement of a $5B fine didn't stop their market cap from increasing by almost $50B. Obviously not a...
Their stock is currently up by about 8% after-hours on their earnings and this news. So the announcement of a $5B fine didn't stop their market cap from increasing by almost $50B. Obviously not a very significant punishment, at least in the eyes of investors.
There's something drastically wrong with western hypercapitalism, and this is either one of the symptoms or one of the causes. It's hard to tell at this point.
There's something drastically wrong with western hypercapitalism, and this is either one of the symptoms or one of the causes. It's hard to tell at this point.
Historically speaking most large fines end up being subsidized by the US population via the company making tax deductions, so it really doesn't surprise me.
Historically speaking most large fines end up being subsidized by the US population via the company making tax deductions, so it really doesn't surprise me.
There are several notes related to the expected FTC fine, such as:
In the first quarter of 2019, we reasonably estimated a probable loss and recorded an accrual of $3.0 billion in connection with the inquiry of the FTC into our platform and user data practices, which accrual is included in accrued expenses and other current liabilities on our condensed consolidated balance sheet. We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion. The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.
Their stock is currently up by about 8% after-hours on their earnings and this news. So the announcement of a $5B fine didn't stop their market cap from increasing by almost $50B. Obviously not a very significant punishment, at least in the eyes of investors.
There's something drastically wrong with western hypercapitalism, and this is either one of the symptoms or one of the causes. It's hard to tell at this point.
Seriously, how is it legal to deduct a fine from your taxes?
I dont think that's how it works. They recoup the loss via unrelated tax incentives. Maybe. I dont know, I'm not a corporate accountant.
Historically speaking most large fines end up being subsidized by the US population via the company making tax deductions, so it really doesn't surprise me.
Here's the official press release now: Facebook Reports First Quarter 2019 Results
There are several notes related to the expected FTC fine, such as: