What Analysts Are Saying After Facebook’s Dismal Q2
Facebook Inc. (NASDAQ: FB) released second-quarter financial results after markets closed Wednesday, and it was absolutely catastrophic. While the top- and bottom-line results were more or less in line, there were more issues with user growth under the surface. Analysts…
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Facebook Inc. (NASDAQ: FB) released second-quarter financial results after markets closed Wednesday, and it was absolutely catastrophic. While the top- and bottom-line results were more or less in line, there were more issues with user growth under the surface. Analysts had a chance to review this report and were reasonably disappointed.
24/7 Wall St. included some highlights from the earnings report, as well as what analysts are saying about Facebook after the fact.
The social media giant said that it had $1.74 in earnings per share (EPS) and $13.23 billion in revenue. That compared with consensus estimates from Thomson Reuters of $1.72 in EPS and $13.36 billion in revenue, as well as the $1.32 in EPS and $9.32 billion in revenue posted in the same period of last year.
Daily active users were 1.47 billion on average for June 2018, an increase of 11% year-over-year. At the same time, monthly active users were 2.23 billion as of June 30, 2018, an increase of 11%.
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Mobile advertising revenue represented roughly 91% of advertising revenue for the second quarter of 2018, up from about 87% of advertising revenue in the second quarter of 2017.
Here’s what analysts had to say:
- Wedbush reiterated a Buy rating with a $250 price target.
- Monness Crespi & Hardt has a Buy rating and lowered its target to $205 from $225.
- Citigroup maintained a Buy rating and lowered its price target from $220 to $210.
- Cowen reiterated an Outperform rating and lowered its target to $200 from $235.
- KeyCorp reiterated a Buy rating and lowered its target price to $215 from $245.
- BMO Capital Markets has a Market Perform rating and a $190 price target.
- Morgan Stanley has a Buy rating and lowered its price from $215 to $185.
- Goldman Sachs has a Buy rating with a $205 price target.
- Nomura downgraded it to Neutral from Buy and lowered its target to $183 from $228.
- JPMorgan has an Overweight rating and lowered its target price to $205 from $242.
- Stifel maintained a Buy rating and lowered its price target from $242 to $202.
- Credit Suisse maintained an Outperform rating and lowered its target to $225 from $265.
Shares of Facebook were last seen down about 19% at $175.83, with a consensus analyst price target of $233.08 and a 52-week range of $149.02 to $218.62.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
