Facebook Inc. (NASDAQ:$FB) announced its earnings for the third quarter on Wednesday and it blew expectations out of the water. Now CNBC’s Jim Cramer has said CEO Mark Zuckerberg did a “masterful” job when discussing the impact of Russia’s 2016 election meddling during the company’s post-earnings conference call.
During the company’s call Wednesday, Zuckerberg said the tech giant plans to increase spending to police content. Not only that, but the Facebook chief said he is “dead serious” about stopping the abuse on its network.
These comments come after Facebook informed lawmakers this week that Russia-based operatives published roughly 80,000 posts on the platform over two years. Why? In an attempt to manipulate U.S. politics.
“I’ve directed our teams to invest so much in security, on top of the other investments that we’re making, that it will significantly impact our profitability going forward,” the CEO said during the earnings call. “And I wanted our investors to hear that directly from me.”
So what did Cramer have to say?
“I thought this was a masterful conference call,” the former hedge fund manager and best-selling author said on Thursday, November 2. Cramer said Mark Zuckerberg is “basically heading off any possibility that they’ll be a billion dollar fine [or] Justice Department investigation.”
Mark Zuckerberg added that maintaining control and protecting the Facebook community is more important than “maximizing our profits.”
“It’s brilliant narrative,” Cramer said, “Because what most people had been afraid of what that he was going to say he was going to boost security, but it would have no impact on earnings.”
On the call, Facebook said next year’s expenses would increase 45% to 60%. By mid-morning Thursday, the stock was down 2.1%.
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