Facebook Shrugs off Data Privacy Scandal, Rallies 7% After Earnings

Social media beast Facebook reported better than expected first quarter earnings after the close Wednesday. $FB has been under pressure since the data privacy scandal broke andconcerns over engagement. The stock rallied over 7% after the release however.

Social media beast Facebook reported better than expected first quarter earnings after the close Wednesday. $FB has been under pressure since the data privacy scandal broke andconcerns over engagement. The stock rallied over 7% after the release however.

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Earnings

Earnings rose 63% to $5 billion or $1.69 per share from $3.1 billion or $1.04 per share a year earlier. Revenues rose 49% to $12 billion both revenues and profit beat market expectations of $1.35 per share and $11.41 billion in revenue

Market Reaction > Facebook, Inc. Common Stock NASDAQ: $FB

Market Reaction > After hours 171.60 +11.91 (+7.46%)

Key Metrics

  • Number of daily active users increased 13% to 1.45 billion
  • Around 2.2 billion monthly active users as of March 31, up 13% compared to last year.
  • Facebook said it made an average $5.45 in advertising revenue on each user worldwide in the quarter,
  • FB said it made an average $23.14 on ad sales for each user in the US and Canada.
  • Mobile advertising revenue accounted for 91% of total revenue up from 85% last year.

“Despite facing important challenges, our community and business are off to a strong start in 2018. We are taking a broader view of our responsibility and investing to make sure our services are used for good,” said Facebook CEO Mark Zuckerberg.

 Facebook Q1 2018 earnings

What About Snapchat?

The seeming demise of $SNAP has also helped Facebook’s cause. By last June Facebook’s Instagram Stories feature had grown to 250 million users which has further undermined its chief competitor, Snapchat $SNAP. This was up from 200 million in mid-April. Snap ended Q117 with 166 million users which was up 36% from the year-ago quarter.

Stories was added in August 2016, is a feature inside Instagram. $FB has in this time copied the most popular features of Snapchat. Instagram has over 700 million monthly users, doubling in just two years.

How pervasive are these internet monsters  in our lives?  A report from Research firm Comscore ranking online hits on mobile devices and computers gives us an idea. The growth of Facebook is a cultural phenomenon, last month $FB reached 2 billion monthly active users, doubling its base in just 4 1/2 years. The Q117 earnings number was 1.94 billion monthly active users.

Unique visitors in June via Comscore

  1. Google 241 million
  2. Facebook 204 million
  3. Yahoo! 186 million
  4. Microsoft 183 million 
  5. Amazon 180 million 

Online advertising Industry Revenue Share via emarketer 

Of a forecast $83 billion revenue in 2017 the market share is expected as 40% Google and 21% Facebook.

From Last Year: Facebook $FB Buys tbh Anonymous App To Compete With $SNAP 

Live from The Pit

 

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