Facebook Q1 Earnings: A question mark on Ad RevenuePublished by Terence Mahier | Source
Google shares soared 7.7% this morning after reporting a decline in Ad Revenue less steep than expected 📈
Tonight, it's up to Facebook to report its Q1 Earnings, and all eyes will be on the potentially declining Ad revenue which accounts for 98.5% of Facebook revenue 💥
During the pandemic, the world seems to be aggressively turning to FB and other social media platforms for information and entertainment. That's good for the key metric of FB which is the Monthly Active Users 👨💻
On the other hand, the traditional advertising FB has had for travel, shopping & small businesses might not be in its best shape 📉
What's your take?
Facebook is down 10% since the beginning of the year but seems to ride Google's wave with +4% in pre-market 📈
Investors will probably turn their attention to what FB is projecting for Q2 and the rest of the year. There is no real short-term risk as FB has a pretty comfortable cushion with $54.8 billion cash, so the danger is far away and investors will expect some guidance on how it will navigate the COVID crisis 😷
Facebook rose 9.5% in pre-market trading after the company reported better-than-expected revenue for its first quarter. Daily active users rose 11% year-over-year, while monthly active users surged 10% year-over-year.
Even though Facebook said it saw a steep decline in ad revenue in March due to the coronavirus pandemic, it also said the first few weeks of April began to show “stability,” injecting optimism into the stock 🚀
- Newspill Team 💊
30-Apr 08:37 (Eastern Time)
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