Hirsch: Facebook happened to the market today. Ignited the sell. Market is searching for support. Stovall: The market reacted quite negatively to Facebook’s earnings miss and weaker-than-expected revenue forecast, causing investors to believe that the correction that started in early January has further to fall.
Full Answer
Why did stocks bounce back in the final hour?
Facebook stock price shot up as high as $45 before tumbling to close at $38.23, only 23 cents above the original asking stock price and $3.82 below its opening stock price, giving it …
Does Facebook face a permanent change to its business model?
Jul 30, 2021 · Facebook's revenue surged 56% year over year to $29.1 billion, fueled by strong growth in its digital advertising services. Its net income, in …
What is Facebook’s business model?
Feb 03, 2022 · Shares of the company formerly known as Facebook saw a historic plunge Thursday after the social media giant reported a rare profit decline due to a sharp rise in expenses, shaky ad revenue growth ...
The prospect of decelerating revenue growth spooked investors
Joe honed his investing skills as an analyst for Stock Advisor, Supernova, and Fool One. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns during its existence.
What happened
Shares of Facebook ( NASDAQ:FB) retreated on Thursday after the social media specialist reported second-quarter results and warned of a growth slowdown later this year. As of 3 p.m. EDT, Facebook stock was down more than 4%.
So what
Facebook's revenue surged 56% year over year to $29.1 billion, fueled by strong growth in its digital advertising services. Its net income, in turn, more than doubled to $10.4 billion, or $3.61 per share. That was well ahead of Wall Street's estimates for EPS of $3.04.
Now what
With user engagement levels on its social media networks up sharply during the pandemic, marketers were willing to pay 47% more per ad on average to advertise on Facebook's platform in the second quarter. But Apple's new privacy policies are expected to weaken Facebook's ad-targeting capabilities.
