Facebook Massive Earnings Beat

      Could Facebook's earning beat finally be the boost that tech stocks need? They are up 6% today after crushing earnings... Other companies have beaten earnings and fell flat on their faces the next day... But could Facebook be different? Microsoft beat earnings and fell 9%, Amazon fell short and has dropped 13% in a week, Netflix knocked earnings out of the park and fell 23% in the last month and 13% in the last week.

      So will Facebook be more of the same or the anomaly? Let's look at their earnings.

      Their financials are highlighted by a 33% growth in advertisement revenue- compared to quarter three of 2017. That's on top of the 1% growth in revenue in other payments and fees. The growth in revenue has increased earnings per share by 11%, to $1.76. It also helped their assets, cash, cash equivalents, and marketable securities increased to over 41 billion... But revenue has never really been Facebooks issue, going back to quarter two the sharp decline in stock price was due to their users.

      They crushed user totals on almost every measurable scale. Daily active users (DAUs) increased to 1.49 billion, an increase of 9% year over year. Monthly active users (MAUs) increased to 2.27 billion, an increase of 10% year over year. The increase in the users has resulted in the increase in ARPU, or average revenue per user. Every region except " Other " have expanded their ARPU. Worldwide their average revenue per user increased from $5.97 to $6.09.

      Overall, I was very impressed with Mark Zuckerberg's honesty and ability to easily explain who, what, where, when and why... He had an answer for all questions and was easily able to elaborate on what the company is planning on doing in the future... Including better monetization of Instagram stories, Instagram shopping, upgraded Facebook stories, and even more expansions into Facebook TV, Facebook marketplace, Jobs (which has already helped connect 1million people with new careers) and even in dating (Maybe a new Facebook acquisition is on the horizon?)

       Overall, Facebook is a buy for me. In my few years of investing, I have never felt this good about a company, I love Mark Zuckerberg and his vision, they have the goodwill and reputation to be the most recognizable and profitable brands in the world.


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