Facebook Q4 earnings revenue beats estimates
Facebook stock rises after beating Wall Street predictions.
|Earnings per share (EPS)||$2.38|
|Daily active users||1.52 billion|
|Monthly active users||2.32 billion|
|Average revenue per user||$7.37|
Facebook's strong showing is in keeping with previous predictions that the tech company would have a positive earnings report. Facebook's revenue grew despite the recent controversies about data mining and data breaches involving customers. The earnings per share (EPS) and revenue were mostly above Wall Street expectations. The EPS was $2.38, higher than the expected $2.19. Facebook revenue was $16.91 billion, more than the projected $16.39 billion. The social media app's daily active users were 1.52 billion, keeping in line with predictions. Monthly daily users were 2.32 billion, the same as the expectation from financial experts.
Facebook's chief executive officer,(CEO), Mark Zuckerberg, touted the success of Facebook's revenue increase.
'Our community and business continue to grow. We've fundamentally changed how we run our company to focus on the biggest social issues, and we're investing more to build new and inspiring ways for people to connect,'said Zuckerberg in a statement.
Zuckerberg also noted the success of the social media company's Stories that lets users post temporary videos and pictures. Users have posted 1 billion Stories across its platforms of Facebook, Instagram, and What's App.
What do Facebook's Q4 results mean for their share price?
Facebook's Q4 results have had a positive effect on their stock. The corporation's stock has surged 7% since the Facebook revenue report. Facebook's share price may likely rise past its current $150.42 since Facebook's earnings beat estimates. In 2018, Facebook's share price tumbled in 2018 after news about its data breaches and spread of false information on its platform. Facebook likely won over investors by vowing to invest more in cybersecurity.
What do Facebook's Q4 results mean for other tech stocks?
What is Facebook's dividend forecast?
Facebook's dividend forecast is high after Facebook's net profits grew to $6.9 billion. Though the social media company hasn't released specific guidance, financial experts like Haris Anwar feels that Facebook has weathered its storm of bad publicity.
'The worst is over for this social media giant. Its ad business and user engagement haven’t been affected despite all the negative blows of the past year,' said Anwar.
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