Facebook Is Simply Resilient
Quote from Ndubuisi Ekekwe on July 25, 2019, 6:54 PMMarkets really like resilient entities; Facebook is one. After all the bad news, investors traded the company stock up. Yes, you can pay $5 billion fine and still reveal potential antitrust investigations and still get 3% jump in your stock. Why? The business is just doing great.
Yesterday, Facebook announced it was paying a record $5 billion fine to the U.S. Federal Trade Commission for violating users’ privacy. And then, just hours later, when it released its earnings, it revealed the existence of another, separate FTC probe into the company for anti-trust violations.
But did investors flee in horror? Not a bit. In fact, the company’s shares climbed more than 3% in after-hours trading, as Fortune‘s Kevin Kelleher writes . The reason for this continued enthusiasm is that, despite repeated reputational and regulatory blows, Facebook’s underlying business keeps powering ahead: the company said its quarterly revenues, $16.9 billion, were up 28% from the prior year. The number of monthly and daily active users was up 8% over the previous quarter
Markets really like resilient entities; Facebook is one. After all the bad news, investors traded the company stock up. Yes, you can pay $5 billion fine and still reveal potential antitrust investigations and still get 3% jump in your stock. Why? The business is just doing great.
Yesterday, Facebook announced it was paying a record $5 billion fine to the U.S. Federal Trade Commission for violating users’ privacy. And then, just hours later, when it released its earnings, it revealed the existence of another, separate FTC probe into the company for anti-trust violations.
But did investors flee in horror? Not a bit. In fact, the company’s shares climbed more than 3% in after-hours trading, as Fortune‘s Kevin Kelleher writes . The reason for this continued enthusiasm is that, despite repeated reputational and regulatory blows, Facebook’s underlying business keeps powering ahead: the company said its quarterly revenues, $16.9 billion, were up 28% from the prior year. The number of monthly and daily active users was up 8% over the previous quarter
Quote from Anyanwupaul on July 26, 2019, 10:26 AMI think this is largely due to the monopoly facebook has created in the social media space.
I think this is largely due to the monopoly facebook has created in the social media space.
Quote from Anyanwupaul on July 26, 2019, 10:42 AMMonopoly and domination....what investors like.
Monopoly and domination....what investors like.
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Quote from Ndubuisi Ekekwe on July 26, 2019, 12:22 PMApologies for the trouble on posting - just submit once. The plugin has issues which the author is yet to fix.
Apologies for the trouble on posting - just submit once. The plugin has issues which the author is yet to fix.