Facebook shares jump after Q4 earnings
Facebook shares rose almost 9% after the social media company reported its slowest quarterly revenue growth in six years on Wednesday.
Facebook shares rose almost 9% on Wednesday, after the social media company reported its quarterly revenue growth.
While the revenue growth was the slowest in six years, it beat Wall Street’s profit estimates, calming investor worries.
Net income rose to $6.88 billion in the fourth quarter up from $4.27 billion last year.
Total fourth quarter revenue rose 30% to $16.9 billion from $12.97 billion, beating analysts’ estimations of $16.4 billion.
Total expenses in the fourth quarter surged to $9.1 billion, up 62% from last year, while the operating margin fell to 46% from 57%.
Facebook's revenue grew despite the recent controversies about data mining and data breaches involving customers.
The social media’s daily active users were 1.52 billion, keeping in line with predictions. Monthly daily users were 2.32 billion, as expected.
The company also says it estimates around 2.7 billion people now use Facebook, Instagram, WhatsApp, or Messenger each month.
‘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 CEO Mark Zuckerberg
Faecbook shares surge after hours
Facebook Inc shares rose upto 9% to USD $163.30 after hours and closed 4.3% in regular trading.
The company's shares have lost a third of their value over the past six months, as the share price remains near its lowest point in two years.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets