Facebook Earnings - It's been a tough quarter for Facebook as far as its share price goes, losing 14% since early September. But yesterday, the social media kingpin released earnings for the period, an indication of whether the recent fall was justified.
Spoiler: it wasn't really. Starting with the good news - EPS beat expectations by a mild 1.4% window, while more importantly, Facebook's "family of apps" is growing users by more than analyst expectations. This likely drove much of the firm's 35% revenue jump, reaching $29bn. Analysts expected $29.5bn, but 35% growth is 35% growth, gotta respect it a little bit. With this, shares gained after hours by as much as 3.7%.
The bad news: Revenue did not beat, missing by a slim margin. On the other hand, net income came in under by a wide margin, missing by a somewhat embarrassing 7.7%. Although, it has become clear for much of the technology space that user growth can sometimes outweigh the importance of financial results that would not apply to many other sectors, so investors could very well be satisfied.
All in all, it turns out that talking about how much you hate Facebook while using Facebook isn't a super effective strategy for "voting with your dollars." We must be getting more grandmothers or something, otherwise I don't understand how they keep growing like this.