Will Facebook See Friends Following Wednesday's Earnings?
Spreadex | Oct 30, 2017 10:08
How many friends will Facebook have following Wednesday’s Q3 earnings release?
Despite repeated questions about its practices during last year’s US election, market-wise 2017 has been relatively drama free for Facebook. After opening at $116.38 the stock hasn’t really shown any signs that it’ll be slowing down, hitting an all-time high, and current trading price, of $177.76 last Friday. That’s a remarkable 53% rise since the start of the year, and an astonishing 366% surge from its $38 IPO price in May 2012.
It doesn’t take a genius to see why Facebook is so popular – the company’s most recent update came at the end of July, and it was a stonker. Total revenue rocketed 44.8% higher to $9.32 billion, with mobile ad revenue now comprising 87% of the total $9.16 billion made in the advertising division. Net income, meanwhile, rose an eye-watering 71% to $3.89 billion, with diluted earnings per share jumping 69% to $1.32. To cap all this off Facebook confirmed that monthly active users had risen 17% year-on-year, crossing 2 billion for the first time in the company’s history.
Wednesday’s figures are expected to be just as strong. Analysts are estimating a 41% increase in total revenue to $9.88 billion – it’s actually on track to hit $12 billion in Q4 – with adjusted earnings up 44% to $1.30 per share.
However these numbers may end up being overshadowed by something else this week. While Facebook’s role in the Russian interference in the 2016 US election is yet to impact the company’s stock price, an appearance from some of executives – alongside those from Alphabet (NASDAQ:GOOGL) and Twitter (NYSE:TWTR) – in front of the Senate Intelligence Committee on Tuesday and Wednesday could change that.
Facebook Inc (NASDAQ:FB) has a consensus rating of ‘Buy’ with an average target price of $185.80.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
Get The App
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.