Facebook shares were bid all day ahead of earnings, closing at a record high – up over 35% since the last earnings on April 25th – despite warnings of higher costs, lower user engagement, and investment in “time well spent” — a term invented by a former Google employee to tackle the problems of technology addiction.
That was the good news.
Despite beating on earnings (Facebook 2Q EPS $1.74, Est. $1.72), Facebook shares are plunging after hours following a miss on revenues, MAUs, and DAUs…
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Facebook 2Q Rev. $13.23B, Est. $13.33B
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Facebook 2Q Monthly Active Users 2.23B, Est. 2.25B (+11% YoY)
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Facebook 2Q Daily Active Users 1.47B, Est. 1.48B (+11% YoY)
FB shares are down around 10% after-hours…
The size of the drop likely reflects the fact that this is a rare occurrence for a company that has consistently beat analyst and investor expectations.
Other details include:
Mobile advertising revenue – Mobile advertising revenue represented approximately 91% of advertising revenue for the second quarter of 2018, up from approximately 87% of advertising revenue in the second quarter of 2017.
Capital expenditures – Capital expenditures for the second quarter of 2018 were $3.46 billion.
Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $42.31 billion at the end of the second quarter of 2018.Headcount – Headcount was 30,275 as of June 30, 2018, an increase of 47% year-over-year.
Facebook hasn’t missed top line estimates since 2015…so it’s different this time? Or BTFD?
via RSS https://ift.tt/2uPXVgp Tyler Durden