Facebook (FB) Stock: Surging On Earnings Beat

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Facebook, Inc. (NASDAQ: FB) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced its financial results for the first quarter, exciting investors who are pushing the stock up. Today, we’ll talk about:

  • The results;
  • what we’re seeing from FB stock as a result; and
  • what we’ll be watching for ahead.

FB Announces Financial Results

As mentioned above, Facebook is having an incredibly strong start to the trading session after reporting its financial results. The report came after the closing bell yesterday, leading to a frenzy in both the after-hours and pre-market.

For the first quarter, FB said that it generated $0.85 per share in earnings. Revenue for the quarter came in at $15.08 billion. The figure beat analyst expectations, who expected the comapny to generate revenue in the amount of $14.98 billion.

When it comes to daily active users, or DAUs, more good news was released. Total DAUs came to 1.56 billion, coming in line with what analysts and investors expected to see. FB said that monthly active users, or MAUs, came in at 2.38 billion. Analysts expected that this figure would come in at 2.37 billion.

During the quarter, Facebook generated $6.42 in revenue per user. Analysts expected that revenue would come in slightly lower at $6.39 per active user. In a statement, Mark Zuckerberg, CEO at FB, had the following to offer:

We had a good quarter and our business and community continue to grow.

We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet.

What We’re Seeing From The Stock

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Facebook, the news proved to be overwhelmingly positive.

After all, investors want to see growth. During the first quarter, Facebook delivered just that, blowing away expectations on just about all data points. So, it’s not surprising to see that excited investors are pushing the stock for the top in the market this morning.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:04), FB is trading at $198.81 per share after a gain of $16.23 per share or 8.89% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on FB. In particular, we’re interested in following the story surrounding the company’s continued work to grow. We’re also interested in the fine that’s coming from the FTC. After all, Facebook set aside $3 billion to cover it. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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