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Facebook Businesses Communications Social Networks The Internet News Technology

Facebook Shares Drop On Revenue Miss (cnbc.com) 69

Zorro shares a report from CNBC: Facebook missed projections on revenue and global daily active users this quarter after struggling with data leaks and fake news scandals. The company reported its second-quarter earnings after the bell on Wednesday. Shares were down as much as 10 percent. CNBC summarizes the results:

Earnings per share: $1.74 vs. $1.72 per a Thomson Reuters consensus estimate
Revenue: $13.23 billion vs. $13.36 billion per a Thomson Reuters consensus estimate
Global daily active users (DAUs): 1.47 billion vs. 1.49 billion, according to a StreetAccount and FactSet estimate
North American DAUs: 185 million vs. 185.4 million, according to a FactSet estimate
European DAUs: 279 million vs. 279.4 million, according to a FactSet estimate
Average revenue per user (ARPU): $5.97 vs. $5.95, according to a StreetAccount and FactSet estimate

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Facebook Shares Drop On Revenue Miss

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  • The drop was after hours. At the close of the market FB hit an all time high with a market cap of over $618 billion. Definitely a good time to buy, just like Tesla is a good buy based on yesterdays dip.
  • by rossdee ( 243626 ) on Wednesday July 25, 2018 @04:31PM (#57009314)

    "Earnings per share: $1.74 vs. $1.72 per a Thomson Reuters consensus"

    A one percemt drop im expected earnings causes a ten percent drop in share price? I thimkit was overpriced in the first place

    • by Anonymous Coward

      Drop is 23% now. Facebook getting smoked in after hours.

    • "Earnings per share: $1.74 vs. $1.72 per a Thomson Reuters consensus"

      A one percemt drop im expected earnings causes a ten percent drop in share price? I thimkit was overpriced in the first place

      Earnings actually beat the Thomson Reuters consensus. But that's just the consensus. Various analysts had estimates well above $1.74.

      In the current after-market, the stock price is starting to bounce up from around $164. Was the sell-off an over-reaction? Probably. Sooner or later, the stock will recover.

      And as for it being overpriced ... valuations can be weird, and the market can ignore them. Look at Tesla for example. There's no reason for its stock price to be above $300. Yet it is.

      • Look at Tesla for example. There's no reason for its stock price to be above $300. Yet it is.

        You are totally right - just based on what has been delivered along with easy to see potential in technology Tesla has got working, along with new trade agreements, Tesla should be over $600. Don't worry, will be there really soon - we'll see over $1200 on TSLA during the epic short unwind though. Going to be fun to watch that one play out!

        • That seems extremely and overly optimistic at this point. Not that I would complain to see it happen, I just don't think it will.
        • by tsa ( 15680 )

          No way. Tesla is already overtaken left and right by the established auto makers who have much better cars that they can actually deliver for a lower price. Tesla's days are numbered if they don't get their shit in order fast.

          • Tesla is already overtaken left and right by the established auto makers who have much better cars that they can actually deliver for a lower price

            I've been to auto shows for years and have seen nothing close to what Tesla offers. Care to give an example so we can laugh and your poor taste in cars and complete lack of understanding of performance?

            Like what are you gonna recommend, a Volt? HAH HAHA AHHA HAHAH AHA HA HAH HA HAHAH HAHAAHAH AHAH AHAH AHAH AHAHAHA!

            It's the car makers themselves that are scramb

            • by tsa ( 15680 )

              Then we totally disagree. Americans just can't build cars, and Tesla is yet another example of that. The doors are flimsy, the dasboard is just not op to scratch for such expensive cars, you can't sit in the back because you can't get your feet under the chair in front of you and there's not enough headroom... Oh wow, 0-100 km/h in 3 seconds! Yeah that is important in daily driving.

              • Performance is important but so is range.

                The doors do not feel "flimsy" to me, though they are light - flimsy would be if they wobbled as you shut the door...

                I would go on but you couldn't even produce a single counter-example, much less one that anyone is actually buying in volume.

                If the car is so terrible why is the Model 3 getting such glowing reviews? It sure seems like I am not the only one that finds fit and finish decent if not spectacular.

                I've had a lot of cars that made it way harder to sit in the

                • by tsa ( 15680 )

                  Nissan's Leaf is often seen here in Europe, as is the Renault Zoe. The Jaguar iPace is a much better car than anything Tesla has on offer. Then we have the (outdated I agree) BMW i3, the e-Golf, and Volkswagen will release a whole range of quite exciting electric vehicles next year. Dieselgate has had a positive effect on them.
                  And of course taste in cars also plays a role here.

      • Personally, I think Musk is intentionally running down Tesla stock so he can buy a bigger share of the company. However, calling the diver a pedo still seems like bad judgement, not strategy. Musk doesn't want to make his second fortune selling cars, he wants to make his second fortune by being the Intel of battery manufacturing. Like CPUs, batteries appears to be a natural monopoly with huge barriers to entry that rewards the few companies that can afford to keep investing heavily in continuous improvement
  • by smithmc ( 451373 ) on Wednesday July 25, 2018 @04:32PM (#57009322) Journal
    Do I understand correctly that, in the quoted part of the posted story, the first number is the actual performance and the second one is the estimate? These numbers are essentially identical, i.e. FB hit its estimates almost precisely. So what's the problem, other than that investors are a bunch of histrionic idiots looking way too hard for something to get upset about?
    • by Anonymous Coward

      The old advice "buy on the rumor, sell on the news" would apply here.

      They were taking profits. The only histrionic idiot is you jackass. They probably had their sell orders in before the announcement.

      Or as often as not, they pump up the earnings estimate to draw in retail suckers, so the street guys can buy cheaper after the suckers cleared out. Or they shorted the stock knowing earnings would be near consensus and "day traders" would sell shares for a measly 1% profit.

    • by Quirkz ( 1206400 )

      Stocks are weird. The daily report on the radio will talk about them being "up" or "down" but then often explain it's only a tiny fraction of a percent, sometimes even a single point, which in my mind ought to be "essentially unchanged."

      Sometime this week I heard "markets were mixed. The Dow was up $x, or roughly .8%. The NASDAQ was down one point." All I could think was, you really call that *mixed*?

      • Sometime this week I heard "markets were mixed. The Dow was up $x, or roughly .8%. The NASDAQ was down one point." All I could think was, you really call that *mixed*?

        The news is apparently not for you, but for HF Traders.

  • by ebcdic ( 39948 ) on Wednesday July 25, 2018 @05:28PM (#57009556)

    Can we stick to technical stuff please?

    • If you do technology to make money, then this is news that matters to you! Personally, FaceBook has stayed in business much longer than I would have predicted and has made a lot more money than I would have predicted, and I can't explain why. But then, I can't explain why Donald Trump get elected either.
      • He got elected because the only other running candidate was fucking worse than he was. If you don't want people like Trump getting elected, field a better opponent, or actually try having a democracy instead of a 2 party system. I find it amusing that America tries to force democracy on everyone (whether they want it or not) but they themselves are not running a democracy.
    • ~20% overnight swing of one of the most significant tech stocks is going to have an impact to tech. How much of an impact remains to be seen, could be anything from meh to another dot com bust.
    • Talking about Earnings and Revenue is, by definition, Technicals.
  • I deleted by FaceBook account several months ago, when reports of misuse of data started coming out. No kids use FaceBook for social media anymore, because their parents all have accounts and can see what they post! My daughter has moved to Instagram and SnapChat herself; no telling what she'll be using next year.
  • What the fuck does it mean to share a drop? Is this website run by 12 year olds?
  • by schwit1 ( 797399 ) on Wednesday July 25, 2018 @06:11PM (#57009772)

    As of Thursday’s close, he will slide to sixth place from third on the Bloomberg Billionaires Index. That's tough.

  • by Zorro ( 15797 )

    Facebook plunges more than 24 percent on revenue miss and projected slowdown.

    https://www.cnbc.com/2018/07/25/facebook-earnings-q2-2018.html

    But it is still 76% of what it was yesterday.

  • by OneHundredAndTen ( 1523865 ) on Wednesday July 25, 2018 @06:23PM (#57009812)
    As usual, investors acting irrationally and like a mob of sheep. No wonder we have market meltdowns every so often. FB remains of PoS though, so no sorrow here.
  • It's actually worse than that now. Yahoo finance is showing an 18.23% drop right now [yahoo.com]
  • Get your affairs in order, Zuckerbook, the Reaper is coming for your ass -- and nothing of value will have been lost.

Avoid strange women and temporary variables.

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