Facebook, Inc. Technology | Internet Information Providers | USA Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. Its solutions include Facebook Website and mobile application that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers; Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends; Messenger, a messaging application to communicate with people and businesses across platforms and devices; and WhatsApp Messenger, a mobile messaging application. The company also offers Oculus virtual reality technology and content platform, which allow people to enter an immersive and interactive environment to play games, consume content, and connect with others. As of December 31, 2016, it had approximately 1.23 billion daily active users. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
Facebook beats second-quarter earnings expectations Shares of Facebook Inc. FB, +0.20% were falling 1.4% after hours Wednesday after the company reported second-quarter earnings. Facebook reported net income of $3.89 billion, or $1.32 per share, up from $2.28 billion, or 78 cents per share, in the year-earlier period. The FactSet consensus was for earnings per share of $1.12. Total revenue was $9.3 billion, up from $6.4 billion in the year-earlier period and above the FactSet consensus of $9.2 billion. Facebook reported 1.32 billion daily active users, a 17% increase year-over-year and in line with FactSet consensus of 1.32 billion. It reported 2.01 billion monthly active users, also a 17% increase year-over-year, and above the FactSet consensus of 1.93 billion. Shares of Facebook have gained 13% in the past three months, outperforming the S&P 500 SPX, +0.03%which has gained 4%.
Facebook Joins the Half a Trillion Club Jul 27, 2017 After an initially negative reaction to earnings after the close yesterday, shares of Facebook (FB) staged a sharp rebound overnight and into today and are currently up by over 5%. With that gain, Facebook’s market cap exceeded $500 billion for the first time, joining the narrow ranks of Apple (AAPL), Alphabet (GOOGL), Microsoft (MSFT), and Amazon.com (AMZN). At one point this morning, it looked as though FB would overtake AMZN for the number four spot, but AMZN’s rally today has been enough to hold FB at bay (for now). The table below lists the 20 largest companies in the S&P 500 based on market cap, and as you can plainly see, tech dominates the top of the list with the three largest companies and four of the top five. The only non-tech stock listed is AMZN, and one could easily make the case that it is just as “techy” as any of the other names. What’s really fascinating about the market caps of these top companies is that the four largest stocks in the S&P 500 Technology sector now account for 48% of the sector’s total market cap and 11% of the entire S&P 500. Looking at it from the other side of the market cap spectrum, the 50 smallest companies in the S&P 500 account for less than 1.5% of the index’s total market cap while the smallest 200 companies account for less than 10% of the index’s market cap. Think about that for a second. If the smallest 200 companies in the S&P 500 were to drop to zero overnight, we still wouldn’t get a 10% correction in the S&P 500! While there has been a lot of talk about the fact that the S&P 500 has become so top heavy and the risks it poses, by itself it isn’t a problem. As long as the rest of the index continues to hang in there, it is not a problem. The time to be concerned would be if we ran into a situation like 1999/2000 when the top stocks were rallying but the rest of the market was faltering. The best way to track that is by monitoring overall breadth levels, and looking at those, we are from that point.
https://www.cnbc.com/2021/10/28/facebook-changes-company-name-to-meta.html Facebook on Thursday announced that it will change its company name to Meta. The name change, which was announced at the Facebook Connect augmented and virtual reality conference, reflects the company’s growing ambitions beyond social media. The re-branding also comes after the company has dealt with a barrage of news reports over the past month stemming from whistleblower Frances Haugen’s trove of internal documents.
Meta (FB) Intraday Performance Following Strong Earnings Thu, Apr 28, 2022 Yesterday, Meta Platforms (FB) reported earnings. In the report, the company noted a sequential rise in both daily and monthly active users in every region apart from Europe, which can be attributed to the effects of the war in Ukraine. This gave investors a sigh of relief, sending shares up over 14% in premarket trading. FB has gapped higher by 5%+ in reaction to earnings fourteen times since its IPO. Historically, when this occurs, the stock's performance from the open and close has been modestly positive, booking gains 57% of the time. The average performance was a gain of 64 basis points (median: 80 bps). The worst intraday performance came in 2014 when the stock traded down by 2.0% percentage points intraday after gapping up 16.05%. On the other hand, the best intraday performance in these time periods occurred in 2018, when the stock gained 4.5% after gapping up 6.0% at the open. Today marks the fourth-best opening gap since FB went public. This is particularly interesting, as the y/y revenue growth rate in this quarter was the slowest seen since the company went public in 2012. Notably, the opening gap does not seem to be a determining factor for the opening to close performance. As you can see from the chart below, only 3.9% of the variation in the open to close performance can be explained by the size of the opening gap (for 5%+ opening gap gains on earnings).
Was It the Stock Price? Tue, Jul 5, 2022 We’ve all seen the impact that falling stock prices have had on investor sentiment in the last few months. The weekly poll that the American Association of Individual Investors (AAII) takes of its members recently showed the lowest level of bullish sentiment since 1992. You read that right. Even during the depths of the Dot Com crash, the Financial Crisis, or the COVID crash, bullish sentiment bottomed out at higher levels than it has in the COVID unwind. General consumer surveys have also cratered. Despite what we're told is a strong labor market (for now) and the world moving on from COVID (even if parts of the world and some groups would prefer that people remain in lockdown indefinitely), we have raging inflation, rising crime, geopolitical uncertainty, gas prices at record highs, and a more politically divided populace than we’ve seen in decades. Consumers are among the most downbeat they’ve ever been. The monthly poll from the University of Michigan has even dropped to levels not seen in the entire 40+ year history of the survey. The shift in sentiment extends beyond the sphere of investors and consumers and into the C-suite as well, most notably in the former high-flying tech/growth sector. Traditionally, these companies have looked like a utopian oasis with amenities, perks, and employee accommodations that the average American could only dream of. Just google the term “google headquarters inside” and you’ll see what we mean. From an outsider’s perspective, it seems like an employee can take a day off (or days off) simply for reasons like they aren't feeling it or if their favorite team lost a game the night before. It’s probably not that extreme. There’s a reason these companies became among the most valuable in the world, and it wasn’t because everybody just has fun and does nothing. But in terms of their 'images', they made it seem like working at their companies was like going to summer camp. When a company’s stock price shoots higher, showering perks on its employees and advertising them for the press to see is just a way of showing how much better the company is than all the ‘old’ economy stocks. This year, we’ve started to see a shift in the attitude of companies towards their employees, and the two most notable were recent comments from Netflix’s Reed Hastings and Meta’s Mark Zuckerberg. Over the last year, there has been well-covered discontent among Netflix employees regarding some of the streamer’s programming and it not fitting in with their personal views. In early May, Hastings responded to these concerns with a long memo that included the suggestion “If you’d find it hard to support our content breadth, Netflix may not be the best place for you.” Up north in Palo Alto, a similar shift has played out at Meta Platforms (META), formerly known as Facebook. In a Q&A session last week, Zuckerberg warned employees that the company was facing one of the steepest downturns in its history, and just after rebranding employees of the firm as his ‘metamates,’ he continued by saying “there are probably a bunch of people at the company who shouldn't be here." Ouch, mate! So what explains the shift in tone among these CEOs from 'kumbaya' to 'don’t let the door hit you on the way out'? Could it be the stock prices? As shown in the charts below, in the cases of both Netflix and Meta Platforms, the shift in tone has come after major declines in each company’s stock where prices have been more than cut in half. Just like many of us common folk, it looks as though stock prices can also have a big impact on the mood of CEOs.
