not vested
Rebranded Winner 1: Facebook Inc (FB)
By now, it feels like the whole Cambridge Analytica scandal that plagued Facebook, Inc (NASDAQ:FB) in mid-March is already old news.
That is a testament to the strength of Facebook’s operating model. It’s also a testament to the adaptability of Facebook management to spin a headwind into a tailwind.
Facebook handled the whole issue really well. CEO Mark Zuckerberg actually got somewhat ahead of the issue by beating the drum of “community safety over profits” in the prior few conference calls. Then, when a whistleblower blew open the whole Cambridge Analytica scandal, Zuckerberg and Company issued an apology, and explained the details of the incident in a blog post.
Zuckerberg proceeded to appear in front of Congress, and was refreshingly honest and humble versus the Wall Street titans who have tended to occupy that same hot seat over the past several years.
Now, Facebook is running an ad on national TV that reminds consumers of what makes Facebook good, openly talks about the stuff that has made Facebook bad recently, and promises to get back to the good stuff.
All these moves are working.
Facebook reported perhaps its best earnings report ever amid its worst PR incident ever. Revenue growth accelerated to 50%, a mark which bests the total revenue growth at even Amazon.com, Inc. (NASDAQ:AMZN) and Netflix, Inc. (NASDAQ:NFLX). Margins exploded higher. Earnings growth was an absurd 63%.
In other words, Facebook has successfully navigated through its worst PR incident ever, and is now back on track as a winning company with a winning stock.
Source: Investor Place