Facebook told investors it expects a Federal Trade Commission fine of up to $5 billion, driving down its GAAP earnings per share. Still, Facebook stock was up more than 4% in after-hours trading Wednesday after reporting otherwise positive first-quarter earnings.
Why it matters: Reports had suggested that the FTC could slap Facebook with a multibillion-dollar fine as a result of an ongoing investigation into Facebook's handling of data privacy. Facebook says it expects a loss of $3 to $5 billion from the debacle. The matter still unresolved.