Facebook surges after sales beat estimates

Facebook Inc’s shares surged in late trading after the largest social-media company posted robust quarterly sales growth and signalled it may be close to resolving a United States (US) privacy investigation, easing investor concerns about the impact of regulatory threats.

First-quarter sales jumped 26 percent and monthly visitors at Facebook’s main site topped projections.

The company also said it set aside $3 billion in the quarter related to an inquiry by the US Federal Trade Commission. The FTC has been in discussions with Facebook over potential violations related to a 2011 consent decree in the wake of privacy missteps. Facebook estimated the loss related to any settlement could be as high as $5 billion.