- Facebook printed solid Q3 earnings.
- New formats like Stories are driving ad revenue growth.
- At least 12 brokerage firms are bullish on FB after seeing the Q3 earnings report.
Facebook appears to be adhering to its motto to move fast and break things. The social media giant continues to perform well even in the midst of backlash, multi-billion dollar settlements, and lawsuits. Its recent earnings report shows that growth at the expense of some legal trouble can be worth it.
Shares of the tech company climbed on Thursday after encouraging Q3 earnings report. The stock reached a high of $198.09. The surge was good enough for a 5.2% increase from the previous day’s close of $188.25.
Although the stock retreated before the trading day closed, numerous institutions either hiked or reiterated their bullish rating for the company. These signals tell us that Facebook continues to assert its dominance in spite of several scandals.
Solid Third-Quarter Performance Reveals Facebook’s Unstoppable Growth
Facebook has been slapped by a $5 billion fine by the Federal Trade Commission (FTC) due to its violations involving user data collection. On top of that, the tech company recently forked over $40 million to advertisers to settle a class-action lawsuit.
Despite all that, Facebook printed third-quarter earnings that topped analysts’ expectations. The company posted earnings per share of $2.12 versus consensus estimates of $1.91 per share. In addition, revenue of $17.65 billion surpassed projections of $17.37 billion. Also, the tech firm’s daily active users (DAUs) of 1.62 billion exceeded predictions of 1.61 billion. Lastly, its average revenue per user of $7.26 eclipsed analyst forecast of $7.06.
Facebook’s DAU is on a steady uptrend. » Read Full Article «