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It's absolutely why their stock crashed. Fb lowered their guidance for upcoming quarters mostly in expectation of slimmer gross margins. Since the top-line reve
by menaggio 8y ago
It's absolutely why their stock crashed. Fb lowered their guidance for upcoming quarters mostly in expectation of slimmer gross margins. Since the top-line revenue isn't expected to change, the decrease in margins is by definition driven by increased costs. This increase is directly connected to Fb's efforts to (manually) police more content. Zuckerberg even explicitly warns of this occuring in one of last year's earnings calls.