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The CEO of Facebook, has responded Following the massive document dump



In his opening remarks to the company's quarterly earnings call on Monday, Facebook CEO Mark Zuckerberg addressed the latest wave of media attention generated by the leak of internal documents from the company.


According to Zuckerberg, "While constructive criticism helps us improve, I believe we are witnessing a concerted effort to selectively use leaked documents to paint an inaccurate picture of our company." As a result of our open culture, which encourages discussion and research about our work, we have made significant progress on a wide range of complex issues that affect everyone."


The company's results were released amid what is arguably the worst crisis the company has faced in its 17-year history. Following the publication of the Wall Street Journal's "Facebook Files" series, which was based on tens of thousands of pages of internal Facebook documents leaked by whistleblower Frances Haugen, a deluge of additional news coverage by a consortium of 17 US news organizations, as well as hearings with US and UK lawmakers, began on Monday. Several of Facebook's most serious issues are addressed in detail in the documents, including the company's struggle to regulate hate speech and misinformation, the platform's use by human traffickers, and research into the platform's negative effects on children and adolescents.


A number of reports have been disputed by Facebook, which claims that they are inaccurate and misrepresent its research and actions. The most recent time Zuckerberg addressed the situation was in a statement released following Haugen's Senate hearing earlier this month, in which he attempted to discredit the whistleblower's credibility. Despite this, another former Facebook employee filed an anonymous complaint with the Securities and Exchange Commission on Friday, making allegations that are similar to those made by Haugen in his complaint.


However, despite the negative press coverage, the company reminded investors on Monday that it is still a money maker.


Facebook reported revenue of $29 billion for the three months that ended in September, representing a 35% increase year on year, according to the company. Profitability increased to nearly $9.2 billion, representing a 17 percent increase year on year, according to the latest figures. According to Facebook, the number of people who use the company's family of apps increased by 12 percent year over year in the third quarter, reaching nearly 3.6 billion.


The outcomes came within striking distance of meeting Wall Street analysts' expectations. The stock of Facebook (FB) rose as much as 3 percent in after-hours trading Monday following the release of its earnings report before settling at around 1 percent higher.


When it comes to public relations crises, Facebook is no stranger to them. Undeniably, despite regulatory and public outcry, Facebook's business has continued to grow at a healthy rate in the vast majority of cases.


This time, however, things might be different. Recent changes to Apple's app tracking policies have already put Facebook's massive advertising business in jeopardy, putting the company's massive advertising business in jeopardy. iOS 14.5 software update, which went into effect in April, requires users to expressly consent to apps tracking their behavior and selling their personal data to advertisers. This data includes the user's age, location, spending habits, and health information, among other things. Facebook has been outspoken in its opposition to the changes, warning investors last year that the update could harm the company's business if a large number of users choose not to be tracked as a result of the change.


In a statement issued Monday, Facebook stated that changes to iOS 14 could result in "continued headwinds" in the fourth quarter of 2021 for the company.


"We have been open and honest about the impending headwinds that we experienced in the third quarter. The most significant impact has been brought about by the changes in iOS 14." During the company's earnings call on Monday, Sheryl Sandberg, the company's chief operating officer, stated that the company's revenue had increased. The result has been two challenges: the first is that the accuracy of our ad targeting has decreased, increasing the cost of driving results for our advertisers; and the second is that measuring those outcomes has become more difficult to accomplish.


In a report released on Wednesday, Facebook hinted that it wants investors to look forward rather than back when discussing Facebook's real-world consequences. From the fourth quarter onward, the company intends to establish a distinct division dedicated to augmented and virtual reality services from the rest of its family of apps, which includes the popular social networking site Facebook as well as Instagram, WhatsApp, and the company's name-brand social networking service.


Chief Financial Officer Dave Wehner of Facebook stated that the company is investing so heavily in this newer division that it will "reduce our overall operating profit by approximately $10 billion in 2021," according to Wehner.


In a statement accompanying the results, Zuckerberg expressed his excitement about the future, saying, "I'm excited about our roadmap, particularly around creators, commerce, and assisting in the development of the metaverse."


As a result of the earnings call, Wall Street analysts asked significantly more questions about new Facebook initiatives and products, such as the metaverse and Instagram Reels, than they did about the company's recent news coverage, serving as a reminder that investors frequently place a higher value on the company's growth potential over the risk of harm. After reaching out to Zuckerberg, Evercore ISI conducted an assessment of the company's progress toward developing artificial intelligence capable of identifying potentially harmful content.


He cited Facebook's quarterly transparency reports, which detail "what percentage of the content on which we act is discovered by our AI rather than reported by humans," according to Zuckerberg. Specifically, he stated that "in the majority of these categories... 90 percent or more of the content on which we act is identified primarily through the AI system. He did, however, point out that the success of the company's systems varies depending on the category.


"Some of the categories, such as hate speech, have proven to be more difficult to categorize," he explained, "because we operate in approximately 150 languages around the world... there is a great deal of cultural nuance to take into consideration."


In addition, Zuckerberg attempted to rally his team of employees.


As a result, he said, "I'm well aware that our efforts are being scrutinized." "I guess all I really want to do is express my gratitude to the team and to the people who are working on this that I'm extremely proud of the progress they're making," he said.

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