ADVERTISEMENT
ADVERTISEMENT

Facebook is seesawing ahead of earnings (FB)

Facebook reports earnings Wednesday. It's a large and profitable company that all of a sudden has begun to carry a lot of baggage that investors are watching.

  • Wall Street expects solid earnings-per-share and revenue growth.
  • Facebook slid Tuesday after it published a list of guidelines on what is and isn't allowed on the platform.
  • Government regulation is a key risk investors are focused on ahead of earnings.

Facebook shares are seesawing ahead of the company's first-quarter results, which are due out after Wednesday's closing bell. Shares fell as much as 2.2% in early action, but have recouped the lion's share of those losses. They're now lower by just 0.33%.

Shares slid more than 3% Tuesday after Facebook published a list of guidelines on what is and isn't allowed on the platform. The list focused on issues such as objectionable content, violent and criminal behavior, and intellectual property.

The announcement from Facebook was the latest attempt by the social-media giant to distance itself from the Cambridge Analytica data scandal that surfaced in March. Cambridge Analytica, a political-research firm, gained access to roughly 87 million Facebook users' data.

ADVERTISEMENT

News of the scandal caused Facebook shares to plunge as much as 19.5% in two weeks following, wiping out nearly $100 billion of market cap.

Now, investors are concerned with several key risks, with the major one centering on pending EU regulation and potential US regulation on data privacy.

Wall Street expects the social media giant to report adjusted earnings of $1.59 a share on revenue of $11.41 billion. That would be an EPS growth rate of 32.8% year-over-year, and a revenue growth rate of 42.1% year-over-year.

Facebook is down 12.31% on the year.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

Here's everything to know about being a virgin on your wedding night

Here's everything to know about being a virgin on your wedding night

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

5 reasons Easter was more fun when we were children

5 reasons Easter was more fun when we were children

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

ADVERTISEMENT
ADVERTISEMENT