What's going on?

Facebook didn�t quite connect with the investors in its life on Wednesday: its stock initially fell 6%, despite better-than-expected fourth-quarter results.

What does this mean?

Investors tend to focus on Facebook�s number of monthly active users when assessing the social media giant�s progress, because it�s those users who are ultimately being sold to advertisers. That number was 8% higher than a year ago, which � coupled with increased monetization of each user � nudged quarterly ad revenue up by a higher-than-expected 25%. And thanks to Facebook�s knack for keeping costs in check � for which it�s fast gaining notoriety among analysts � the company�s profit beat estimates too.

Why should I care?

For markets: Facebook�s next chapter.

Astute investors (here�s lookin� at you, kid) might not have been too surprised by the positive update: Facebook has beaten analysts� fourth-quarter revenue expectations by 2% � and profit forecasts by 10% � every year since 2015. And that might help explain why investors sold off its shares. The company�s fourth-quarter profit was �only� 1% more than forecast, bucking the historical trend and perhaps falling short of investors� more informal expectations (tweet this). Facebook might be hoping a new revenue stream in the form of Instagram Checkout will restore its expectation-busting habits � or at least distract investors from its embarrassment-plagued digital currency�

The bigger picture: The current chapter�s not over.

New revenues aside, ads are likely to remain Facebook�s bread and butter for some time. And there�s gold in them hills: with a US presidential election on the way and Twitter having announced plans to ban political ads, campaigners will likely turn to the �book to get their message out. Billionaire Michael Bloomberg � who fancies himself the Democratic party�s nominee � only entered the race a couple of months ago, and has reportedly spent $250 million on ads already.