Facebook share price: where next after strong Q3 sees uptick in users
Despite suffering a public relations nightmare, the social media company recorded a strong set of third quarter results that saw revenues rise and users increase.
Last week, Facebook reported a strong set of third-quarter (Q3) results that saw its daily active users increase 2% to 1.62 billion and revenue rise 29% year-over-year to $17.6 billion.
‘We had a good quarter and our community and business continue to grow,’ Facebook founder and chief executive officer (CEO) Mark Zuckerberg said. ‘We are focused on making progress on major social issues and building new experiences that improve people's lives around the world.’
Facebook earnings beat expectations
The social media company’s strong quarterly performance translated into the business generating $2.12 in earnings per share (EPS) – beating analysts' forecast of $1.91 EPS.
In the wake of its Q3 results, Facebook saw its shares climb 5%, with the stock trading at $194.72 a share as of 11:45 GMT on Tuesday.
Forecasters are upbeat about Facebook’s share price. Based on 31 Wall Street analysts the average price target for the stock is $234.04, with a high estimate of $270 and a low of $120 a share, according to TipRanks.
Facebook catches flak for defending political ads
The social media company came under fire for not banning political ads and for refusing to fact-check candidates’ advertisements on its platform.
‘At times of social tension there has often been an urge to pull back on free expression . . . We will be best served over the long term by resisting this urge and defending free expression,’ Zuckerberg said.
‘I believe that the better approach is to work to increase transparency. Ads on Facebook are already more transparent than anywhere else,’ he added.
Zuckerberg’s sentiments differ from those expressed by Twitter CEO Jack Dorsey, who announced he will ban political ads on his platform.
Gerber Kawasaki bullish on US tech
Following earnings announcements from Apple and Facebook, Ross Gerber, CEO at Gerber Kawasaki, explains why he is bullish on the tech sector overall. However, he is bearish on Facebook within the group. Gerber also comments on Twitter’s decision to impose a global ban on political advertising on its platform.
This information has been prepared by IG, a trading name of IG Markets 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. See full non-independent research disclaimer and quarterly summary.
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