Facebook is nearing eliminate its toughest year like a public company. In advance of results , analysts are hoping good news can’t have any worse.
The social-media giant predicted to report third-quarter revenue of $13.8 billion, up 34% at a year earlier. Operating profit will likely be $5.79 billion, based on analyst estimates compiled by Bloomberg.
Those cheery projections belie another quarter of turmoil that included executive departures, an incredible privacy breach, threats of regulation, and struggles to contain misinformation ahead of key elections in america.
Three months ago, Facebook stunned Wall Street with a second-quarter revenue miss along with a warning that growth would slow while spending rises. On Tuesday, investors are going to be watching user engagement numbers and expenses closely. The surface of the wish list: Forget about nasty surprises.
“Providing management doesn’t surprise with an increase of negative announcements about long-term revenue and expense trends, we believe the stock have a good 4Q,” Macquarie analyst Ben Schachter wrote from a recent note to clients.
Facebook has lost above $200 billion in market value since an all-time rich in July and also the shares are trading at the best level since May 2017. Investors come to mind desinged to use of main social network has plateaued, while future reasons for growth, such as messaging, might be less profitable.
Facebook monthly active users need to total 2.28 billion during the third quarter, up from 2.23 billion in the previous three months, according to analyst estimates provided by Bloomberg.
If Facebook can continue users coming back to its online community, the advertising dollars will almost certainly still flow, giving the corporation room to purchase solutions due to the problems.
A recent survey by RBC Capital Markets found that the proportion of Facebook advertisers who prefer to better their paying for the service had fallen to 49% in September from 66% a year earlier. Conversely, Instagram is seeing sizable increases ad budgets, using the RBC poll.
“Given that its revenues grow, the organization has the flexibleness to handle its spending,” said Wedbush Securities analyst Michael Pachter.
? 2018 Bloomberg L.P
