Analysis: Facebook once again shows it can grow without spiralling costs

Analysis: Facebook once again shows it can grow without spiralling costs

Facebook's figures show it can smash estimates while maintaining a healthy margin, unlike Twitter

The headline figure from last night’s Facebook earnings is not specifically its revenue, which managed to smash estimates by breaking €7 billion for the first time. It’s that, for the fourth straight quarter, the company has posted a year-on-year increase in operating margins.

When it comes to social networks, looking at operating margins is where it’s at: Twitter can post revenue gains till the cows come home, but it doesn’t matter if it can’t...

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