A 17-year-old student's new phone app has attracted millions of pounds from backers, including Rupert Murdoch, and celebrity praise.
The social networking site Facebook has more than one billion users, founder Mark Zuckerberg announced on the site.
Since it was floated on the Nasdaq share index in the US, Facebook has dropped below 30 dollars per share.
Facebook CEO Mark Zuckerberg reaped a £1.98 billion ($3.3 billion) gain in 2013 by exercising stock options in the social networking company he founded at Harvard University.
In 2012, the now 29-year-old, also made $2.3 billion off his stock options. He even limited his Facebook salary to just $1, according to regulatory documents filed on Monday.
Facebook will acquire the two-year-old Oculus VR Inc, a maker of virtual-reality glasses for gaming, for $2bn (£1.2bn).
It is Mark Zuckerberg's first venture into the fast-growing wearable technology industry.
The acquisition, which comes hot on the heels of its $19bn deal for messaging service WhatsApp, marks a big bet by Facebook to anticipate the next shift in an evolving technology industry, at a time when consumers are increasingly abandoning their PCs for smartphones.
"We're making a long-term bet that immersive, virtual and augmented reality will become a part of people's daily life," Facebook founder Zuckerberg said.
Facebook co-founder Mark Zuckerberg has hit out at the US government over claims it covertly used the social networking site to gather intelligence data on individuals.
Zuckerberg said he was "confused and frustrated" by the reports and stressed that to "keep the internet strong, we need to keep it secure".
He wrote in a Facebook post: "When our engineers work tirelessly to improve security, we imagine we're protecting you against criminals, not our own government.
"The US government should be the champion for the internet, not a threat. They need to be much more transparent about what they're doing, or otherwise people will believe the worst."
The internet mogul said he called President Barack Obama to discuss the issue, adding, "Unfortunately, it seems like it will take a very long time for true full reform."
The WhatsApp instant messaging service is on course to connect one billion people around the world, Facebook founder Mark Zuckerberg has said.
The mobile phone application was bought by Facebook for 19 billion US dollars (£12 billion) last week.
It was announced today that a voice calling service will be added to WhatsApp in the coming months.The WhatsApp brand is to be maintained and its headquarters will remain in Mountain View, California. Its co-founder and chief executive Jan Koum will join Facebook's board of directors.
Mr Koum told the conference that WhatsApp would offer a voice service for Android mobiles and iPhones this spring, with Blackberry, Microsoft and Nokia handsets coming later.
Facebook founder and CEO Mark Zuckerberg will sell 41.4 million shares worth about $2.3bn (£1.4bn) to pay a tax bill.
Zuckerberg's sale will reduce his voting power to 56.1 percent from 58.8 percent, the company said in a financial document.
Facebook said it expects Zuckerberg to use most of the net proceeds from the sale to satisfy taxes related to the exercise of an option to buy 60 million Class B shares.
Each Class A share is entitled to one vote, while Class B shares are entitled to 10 votes and are convertible at any time into one Class A share.
Board member Marc Andreessen will also sell 1.65 million Class A shares, while Facebook will sell 27 million in total.
Mark Zuckerberg has taken privacy to a new level.
The creator of the world's biggest social network has reportedly spent over $30m on four houses surrounding his own home - to help keep his personal life to himself.
But they won't be left empty - according to Mercury News, the Facebook founder will lease the existing homes back to the families that live there.
Why? So he can stop people capitalising on the the bragging rights of living next door.
A source reportedly claimed a "developer was going to build a huge house and market the property as being next door to Mark Zuckerberg."
Facebook founder Mark Zuckerberg has vowed to make internet access available around the globe by launching a new initiative to make getting online more affordable.
Currently 2.7 billion people have access to the web, but Mr Zuckerberg's goal is to make it possible for a further five billion.
The Facebook chief executive is launching internet.org in partnership with other companies including Ericsson, Samsung and Nokia, which will develop joint projects and share knowledge to bring the world online.
"There are huge barriers in developing countries to connecting and joining the knowledge economy," Mr Zuckerberg said.
"Internet.org brings together a global partnership that will work to overcome these challenges, including making internet access available to those who cannot currently afford it."
A blogger from Palestine used a hole in Facebook security to post a message about the flaw on founder Mark Zuckerberg's page.
Writing on his blog, IT graduate Khalil Shreateh says he attempted to report a "serious vulnerability" using the site's Whitehat system - which allows hackers to be paid for notifying the site of bugs - but was met with an email reply which said the issue was "not a bug."
Concerned about the issue, which appears to have allowed Shreateh to post on the pages of users who were not his Facebook friend, he said he then exploited the bug to post on Zuckerberg's wall.
Facebook then temporarily disabled Shreateh's account and said he would not be paid because his actions violated the site's terms of service, emails showed.
Facebook has seen second quarter revenue soar to $1.813 billion (£1.18 billion) - a 53% increase on $1.184 billion (£770 million) in the same period last year.
The world's biggest social network made $333 million (£217 million) in net income from April to June compared with a net loss of $157 million dollars (£102 million) a year ago, according to the company's latest financial results.
The number of monthly users accessing Facebook on mobile devices - including smartphones and tablets - rose by 51% year on year to 819 million in June.
Facebook founder and chief executive Mark Zuckerberg said: "We've made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile.
"The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future."
Facebook founder Mark Zuckerberg said the social networking site's News Feed "is one of the most important things we have built", ahead of an expected revamp to the service.