Facebook (FB) stock shrugs off recent losses, jumps 3% on Europe job plan

Highlights

  • A Facebook spokesperson told Bloomberg the hirings would occur in over half a dozen European countries, including France, Germany, the Netherlands, Italy, and Spain.

  • In July, Facebook CEO Mark Zuckerberg revealed new developments in the metaverse project, which will allow users to network, live, work, and play in a virtual world.

  • Facebook is expected to report its third-quarter results on Oct 25.

The Facebook Inc (NASDAQ: FB) stock was up more than 3% in intraday trading, hours after it announced plans to hire up to 10,000 specialists in Europe to help develop a metaverse.

The FB stock traded at US$334.935 at 1:32 pm ET on Monday.

Facebook said it would hire 10,000 high-skilled professionals in the continent in the next five years to help develop its metaverse plan.

A Facebook spokesperson told Bloomberg the hirings would occur in over half a dozen European countries, including France, Germany, the Netherlands, Italy, Spain, Poland, and Ireland. However, it didn't include the UK, one of the major European countries.

In July, Facebook CEO Mark Zuckerberg revealed new developments in the metaverse project, which will allow users to network, live, work, and play in a virtual world.

According to Bloomberg, the decision underscores the company's strong belief in Europe's technology sector, the company executives said in a statement.

In their joint statement, the executives stressed that they want "stability" in global data flows, and the social media company will work closely with the respective European governments to identify the right talent and markets to take its plan forward.

Facebook also expects increased advertising deals during the upcoming holiday season marred by concerns of likely supply chain disruptions that may hit retailers' revenue.

Facebook's global business vice president Nicola Mendelsohn has told Bloomberg Television that although industries are seeing significant impact from the supply chain disruptions, the social media platform is expecting a robust "online marketing period".

Also Read: Explore five alternative social media stocks to Facebook

Facebook plans to hire up to 10,000 high-skilled professionals in Europe in the next five years to help develop its metaverse plan. 

Source: Pixabay

Also Read: Facebook doubles Q2 profit; PayPal’s net profit declines 23%

Facebook’s recent controversies

The Facebook stock had been losing steam after repeated allegations dogged the company over the past few weeks. The Wall Street Journal's damning report series about the social media platform's negative impact on teenaged girls had created a massive controversy this month that raged for days.

Close on the heels, a former employee's testimony before a Congressional committee last week had generated massive negative publicity that soiled its image as a safe platform for young people.

Before these latest allegations emerged, the company had already been under the scanner for data privacy issues at home and abroad. But, most importantly, whistleblower Frances Haugen accused the company of knowing the dangers to young people, yet it did nothing to rectify them.

The whistleblower also pointed out that Facebook maintained a high level of secrecy surrounding its algorithms. She alleged that only a few top officials were privy to Facebook's algorithmic system.

The Journal has released another report as part of its Facebook series, detailing how its AI algorithm failed to correctly identify the original video uploaders, or those behind the racist rants, or spreading misinformation in one of the areas that the US lawmakers had repeatedly flagged in the past. 

Next, Facebook is expected to report its third-quarter results on Oct 25; perhaps that will present an opportunity for the company to change the negative headlines.

Bottomline

Facebook's hiring plans in Europe for the metaverse project, and the upcoming quarterly results perhaps will help divert people's attention from the bad publicity it has been receiving in recent days. According to analysts at the S&P Global Market Intelligence, Facebook is expected to report solid growth in the quarter, estimated at 37% sales growth, and earnings of up to 17% increase. However, investors should analyze the companies carefully before investing in stocks.

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