Facebook reported quarterly earnings and revenue that beat analysts' expectations on Tuesday, but the stock tanked after the social media giant handed in a disappointing outlook.
The firm projected that costs and expenses will increase between 50 percent and 70 percent next year as it looks to invest in talent, and new areas like video, CFO David Wehner said on the company's conference call.
In addition, the company sees fourth-quarter revenue growing between 40 percent and 47 percent in comparison to the same quarter last year. Wall Street was looking for year-over-year revenue growth of 45 percent.
The stock shed 10 percent in after-hours trading.
Revenue generated from advertising came in at $2.96 billion, up 64 percent from a year ago, with about 66 percent coming from mobile ads.
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The social media giant reported third-quarter earnings of 43 cents per share on $3.2 billion in revenue, beating expectations for 40 cents per share on $3.12 billion in revenue, according to a consensus estimate from Thomson Reuters.
Daily active users, which represents the company's most engaged fans, increased 19 percent, year over year, to 864 million, compared with StreetAccount estimates for 852.5 million.
Total monthly active users rose 14 percent, year-over-year, to 1.35 billion, while mobile monthly active users rose to 1.12 billion during the quarter, up 29 percent year-over-year. Both figures were in-line Wall Street projections.
