Australian Investment Blog
Information Technology 26/07/2018
Facebook misses targets – have you logged out yet?
Stock
Facebook (FB) $US 179.30 as at 26/07/2018
Event
Facebook was hit 24% at one stage after the US market closed this morning following the release of second quarter earnings that missed the mark. Earnings were reasonable, at $1.74/share vs. $1.72 consensus, however revenue was light on, but most concerning was the miss in active user numbers. The privacy issues that has plagued Facebook of the past few months is clearly starting to hit home, and revenue growth is now expected to slow into the back half of the year. Margins are expected to be squeezed as well, down from 44% in this quarter to the mid-30s into the second half of the year. Global users was what really spooked the market, with 1.47bil for the quarter, this was below the markets 1.49bil expectations. Signs of slowing growth has clearly rattled the market, and single digit growth is clearly too low for a company on a PE of 26.75
Facebook (FB) Chart
Market Matters Take/Outlook
We have written about Facebook and the vulnerability of FANGs recently, the aftermarket ...
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