Tuesday, January 22, 2019 2:34:49 PM- Nigerian Stock Exchange.



  Facebook’s Q3’18 earnings: will drive it further down the worm hole or rise it above the ground?

      

30 October 2018 : Monday was not a good day for the market, owing to the huge market decline, the tech giants: Facebook, Amazon, Netflix, and Google all dipped during the trading hours.Today’s post the trading hours, Facebook is expected to release its Q3’18 results and the investors are siting on the edge of their seats, will the earnings throw napalm on the fire or will it extinguish the fire?


Snapshot


Facebook has recently been under a lot of scrutiny and media attention for the wrong reasons, the social tech giant has been accused too spreading misinformation and “ FAKE NEWS” , Although, the company has spent quite a lot to combat these problems to keep its platform lucrative to its consumers, this  “hole in the pocket” is expected to show up in its income statement. Last quarter, Facebook had commented that its operating margin is expected to fall to the "mid-30s on a percentage basis" over a more than two-year period. In Q2, the firm had already posted an operating margin of 44% which is already the firm’s lowest level in the past five quarters.


Looks like there might be light at the end of the tunnel after all as, Facebook’s Q3 user growth estimates are pointing in the positive direction. Specifically, Facebook’s average revenue per user in the U.S. and Canada— its largest markets, where it made about 50% of its revenues last quarter—is projected to skyrocket by 43% from $21.20 in the year-ago period to hit $30.31. 


Moreover, Facebook’s overall Q3 revenues are projected to surge by 33.8% to reach $13.81 billion, based on Yahoo Finance’s current Zacks Consensus Estimate. There is a slight catch, as the other end of the income statement doesn't look so good : Facebook’s adjusted quarterly earnings are expected to sink 8.2% to touch $1.46 per share.



Reporting for EasyKobo on Tuesday ,30 October 2018 in Lagos, Nigeria





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