How Facebook Did It Again in Q2 Despite Huge Bottom-Line Miss
Facebook released disappointing second-quarter financial results after the markets closed on Wednesday.
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Facebook Inc. (NASDAQ: FB) released second-quarter financial results after markets closed Wednesday. The social media giant said that it had $0.91 in earnings per share (EPS) and $16.9 billion in revenue, compared with consensus estimates that called for $1.88 in EPS and $16.5 billion in revenue. The same period of last year had $1.74 in EPS and $13.23 billion in revenue.
During the quarter, daily active users were 1.59 billion on average for June 2019, an increase of 8% year over year. At the same time, monthly active users increased by 8% to 2.41 billion.
Mobile advertising revenue represented roughly 94% of advertising revenue for the second quarter of 2019, up from about 91% of advertising revenue in the same period last year.
Additionally, management estimates that more than 2.1 billion people now use Facebook, Instagram, WhatsApp or Messenger every day on average, and around 2.7 billion people use at least one of this family of services each month.
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Mark Zuckerberg, Facebook founder and CEO, commented:
We had a strong quarter and our business and community continue to grow. We are investing in building stronger privacy protections for everyone and on delivering new experiences for the people who use our services.
Shares of Facebook closed Wednesday at $204.66, in a 52-week range of $123.02 to $218.62. The consensus price target is $223.19. Following the announcement, the stock was up about 3% at $211.25 in the after-hours trading session.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
