Facebook (FB) 02 (Oct 17 - Dec 19)

Re: Facebook (FB)

Postby winston » Fri Jul 27, 2018 6:03 am

vested

Barely anyone signed up to Facebook in second quarter

Facebook reported Wednesday it had 2.23 billion monthly users as of June 30, up 11 percent from a year earlier.

Analysts were expecting 2.25 billion, according to FactSet.

User growth — both on a monthly and daily basis — was flat in the U.S. and the rest of North America, while it declined slightly in Europe.

Facebook has largely saturated in the U.S. and Western European markets, and is now looking to countries such as Brazil, India and Indonesia for new users.

Revenue from these regions, however, is far below what Facebook rakes in from the U.S. and Europe.

The company earned US$5.1 billion, or US$1.74 per share, up 31 percent and above analysts’ estimates of US$1.71.

But revenue — up 42 percent to US$13.23 billion— was slightly below the US$13.34 that Wall Street was expecting.

Facebook said the European privacy rules, called General Data Protection Regulation, or GDPR, did not have a big effect on the quarter’s revenue, but also noted that they were only in effect for about a month before the quarter ended.

Over the long term, GDPR may end up favoring Facebook and other large companies that have the resources to adapt to new requirements.

They could similarly disadvantage smaller, lesser known companies that don’t have the resources to comply and which could face big fines if they do not.

Source: AP
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Re: Facebook (FB)

Postby winston » Fri Jul 27, 2018 6:14 am

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Facebook warns of slowing revenue growth, shares sink by 17.8pc

There is a scratch in Facebook’s Teflon coating.

The social network’s user base and revenue grew more slowly than expected in the second quarter, as the company grappled with privacy issues, sending its stock tumbling after hours.

The company also warned that it expects revenue growth to decelerate in the next couple of quarters as it promotes new, and for now less profitable, products— such as its Stories disappearing message feature.

It is also allowing users to make "more choices” around data privacy amid public outcry and regulatory pressures.

The earnings covered the company’s first full quarter since the Cambridge Analytica privacy scandal erupted. But analysts attributed the user growth shortfall largely to European privacy rules that went into effect in May, not to the furor over the political consulting firm with ties to President Donald Trump, which improperly accessed the data of tens millions of Facebook users.

Shares sank by 17.8 percent to US$178.77 in after-hours trading after closing at US$217.50. Wednesday’s closing price amounts to a 31 percent increase in the past year; earlier in the day, shares hit a record high.

While the stock fell modestly after the initial earnings numbers came out, it tumbled more sharply after chief financial officer David Wehner warned of the revenue deceleration during Facebook’s earnings conference call.

Still, the results suggest that Facebook may have weathered the scandal without major harm to its business, even if its public image has taken a hit. While revenue fell short of Wall Street estimates, it did so by only about 1 percent; profits, meanwhile exceeded forecasts.

Source: AP
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Re: Facebook (FB)

Postby winston » Fri Jul 27, 2018 6:26 am

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What Wall Street analysts are saying about Facebook's disastrous quarter

by Myles Udland

On its earnings conference call, Facebook said its revenue growth rates could slow by “high-single digits” in the third and fourth quarters, adding that expense growth was likely to outpace revenue growth next year.


Source: Yahoo Finance

https://finance.yahoo.com/news/amazon-s ... 56400.html
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Re: Facebook (FB)

Postby winston » Fri Jul 27, 2018 8:14 am

Three analysts downgrade Facebook's once-loved stock as Wall Street is stunned over coming profitability plunge

Several analysts are downgrading Facebook shares after the company's disappointing sales and profitability forecasts.

Chief financial officer David Wehner says the company's operating profit margin will fall to the “mid-30s on a percentage basis” over a more than two-year period, compared with second-quarter operating margin of 44 percent.

by Tae Kim

Chief financial officer David Wehner said the company's operating profit margin will fall to the "mid-30s on a percentage basis" over a more than two-year period, compared with second-quarter operating margin of 44 percent.

Even after the downgrades, Facebook still has a whopping 28 buy ratings on Wall Street, three hold ratings and two sells.


Source: CNBC

https://www.cnbc.com/2018/07/26/wall-st ... ge-do.html
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Re: Facebook (FB)

Postby winston » Fri Jul 27, 2018 10:39 am

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This Is Your Chance to Buy Facebook Stock for Cheap

Facebook earnings reveal tough challenges but consider FB's longer-term case before you bail

By JOSH ENOMOTO

Prior to the Q2 FB earnings report, covering analyst expected to see 1.49 billion daily active users (DAUs). Instead, they got 1.47 billion.

Facebook has a vulnerability to Snap (NYSE:SNAP) in the youth demographic.


Source: Investor Place

https://investorplace.com/2018/07/your- ... h=nonbuyer
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Re: Facebook (FB)

Postby winston » Fri Jul 27, 2018 8:16 pm

THREE REASONS THAT CRASHED FACEBOOK

As soon as the management of Facebook Inc. finished with its earnings call for the second quarter, the share price plunged by as much as 24 percent in extended trading.

In the process, the social media company lost US$130 billion of its total market capitalization – more than half of Singapore’s June 2018 foreign reserves of US$288 billion!

Apart from the revenue miss and lower daily user counts in Europe, there were three reasons cited by Chief Financial Officer (CFO) David Wehner that resulted in the near-capitulation.

1. Declining Revenue

The CFO warned shareholders that revenue growth will decline by high single-digit from previous quarters in the next two quarters of this year.

In explaining the decline, Wehner said,”We plan to grow and promote certain engaging experiences like Stories that currently have lower levels of monetization, and we are also giving people who use our services more choices around data privacy which may have an impact on our revenue growth,”

He also cited currency fluctuations as a reason that would hit earnings for the rest of the year.

2. Weaker Margins

In addition to lower revenue, Wehner expects margins to decline with operating margins coming in at the “mid-30s on a percentage basis. This pales in comparison to the 44 percent in the already-poor second quarter.

The lower margin is attributable to a diversification of markets and investments in products such as the long-form video format. Furthermore, spending in areas such as safety and security cost the company billions of dollars.

“We think that’s the right thing to do for the business in terms of ensuring the community, safety and durability of the franchise,” Wehner said.

3. Regulatory Changes

The Cambridge Analytica privacy scandal that blew up in its face forced Facebook to make several privacy policy changes. Regulatory changes in the European Union allowing users more control over online data resulted in changes too.

The effects of the changes in Europe was felt as early as May as users declined. Going forward, Facebook expects the changes to continue impacting the company as the full effects have yet to be felt.

Source: Shares Investment

http://aspire.sharesinv.com/57271/three ... -facebook/
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Re: Facebook (FB)

Postby winston » Mon Jul 30, 2018 9:31 pm

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I’m Buying This Stock

by Shah Gilani

Total expense growth could exceed revenue growth. That sounds bad – but so what?

With more than $42 billion in cash, and more being generated every day, fines won’t be a problem.


If fines are minor or nonexistent, the stock will take off.

If revenue accelerates, the stock will take off.

If margins stay above 40%, the stock will take off.

If operating expenses come in less than “talked-up” in the future, the stock will take off.


I’m going to add to my position if the stock falls to $170, buy more if it drops to $160, and load up the truck if it gets to $150.


Source: Wall Street Insights & Indictments

http://dailytradealert.com/2018/07/30/a ... his-stock/
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Re: Facebook (FB)

Postby winston » Fri Aug 03, 2018 7:49 am

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WhatsApp to start charging business users

Facebook Inc's WhatsApp messenger service will start charging businesses for sending marketing and customer service messages, it said on Aug 1.

The messages will be charged at a fixed rate for confirmed delivery, ranging from 0.5 cents to 9 cents per message depending on the country.

WhatsApp, which has around 1.5 billion users, said starting Wednesday, businesses can use its WhatsApp Business API to send notifications such as shipping confirmations, appointment reminders and event tickets.

Source: Reuters

https://www.thestar.com.my/tech/tech-ne ... ters-news/
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Re: Facebook (FB)

Postby winston » Wed Aug 08, 2018 8:11 am

Not vested. Sold last night.

U.S. think tank's tiny lab helps Facebook battle fake social media

by Joseph Menn

The Atlantic Council's Digital Forensic Research Lab is based in a 12-foot-by-12-foot office in the Washington, D.C., headquarters of the nearly 60-year-old Council www.atlanticcouncil.org.

FB: $40 billion in annual revenue in 2017.

Mark Zuckerberg wants to outsource many of the most sensitive political decisions, leaving fact-checking to media groups and geopolitics to think tanks.




Source: Reuters

https://www.reuters.com/article/us-face ... r%20Update
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Re: Facebook (FB)

Postby winston » Wed Aug 08, 2018 10:51 am

not vested

Facebook:-

Pros: Fwd PE 18; Revenue 20%; Margins 35%; US$36b Cash; 1.4b Users;

Future: Whatsapp Business; Instagram (500m), Marketplace (700m), Watch Videos and Dating;

Cons: Increased Regulation and Expenses; Inexperienced; Lawsuits;
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