Facebook Inc (NASDAQ:FB) has committed earlier this month to construct at least 1,500 housing units, which will be available for everyone and not just exclusively for its employees, in response to the worsening housing dilemmas in Silicon Valley.
Heightened Job Opportunities, Lacking Housings
The growing population in the area is largely attributed to the massive growth of employment opportunities that the company is offering in line with the expansion of its main headquarters (HQ) in Menlo Park. Clearly, Silicon Valley is one of the busiest technology hubs in the country since most industry leaders are situated at it.
From 2010 to 2015, over 380,000 new jobs have been created in the area, which significantly outpaced the development of housing facilities. Due to the shortage, real estate owners and dealers, and renters have been forced to increase prices.
Facebook’s Housing Plans
Accordingly, 15% of the new housing facilities will be dedicated to low-to-middle-income families. However, it is still uncertain whether it is directly Facebook or a third-party collaborator will develop the housing units. No time table has been determined for the project yet as well.
Ray Mueller, a Menlo Park City Council member, expressed his support for the proposal of Facebook, believing that while it will not solve the dilemma entirely, it will be a huge help. Should other companies such as Alphabet Inc (NASDAQ:GOOGL) launch their respective housing initiatives as well, Mueller notes that the housing problems in Silicon Valley are not far from being resolved completely.
Q2 Financial Highlights
The social networking giant has recently released its second quarter results, boasting a year-over-year surge of 59% in revenue. For the period, Facebook had a total revenue of $6.44 billion, outperforming projections of $6.02 billion. The North American and European markets combined have accounted for more than 75% of the company’s quarterly revenue.
Moreover, Facebook reported an adjusted earnings per share (EPS) of $0.97 for the quarter, beating expectations of $0.82.
Daily active users (DAUs) significantly jumped 17% from the same quarter in 2015 to 1.13 billion, beating expectations of 1.12 billion. The company’s number of employees also rose 32% year-over-year to 14,500 globally.
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