What Ad-Boycott? Facebook Shares Jump After Crushing Every Major Metric


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Heading into earnings tonight, Facebook had been making a lot of headlines on twitter as an increasing number of virtue-signalers claim they are boycotting ad invest in the social media network (and not simply cutting expenses amid COVID).

” We’re glad to be able to offer small businesses the tools they need to grow and be successful online during these tough times,” said Mark Zuckerberg, Facebook founder and CEO.

” And we’re happy that individuals can depend on our services to remain connected when they can’t constantly be together personally.”

There seems absolutely no effect from the ad-boycott (though the boycott didn’t technically begin until July 1, the very first day of the third quarter, so it’s not likely there’s any effect visible in these numbers) as Facebook smashed the ball out of the park, beating on every significant metric:

  • FACEBOOK 2Q EPS $1.80, EST. $1.39

  • FACEBOOK 2Q REV. $1869 B, EST. $1731 B (+11% YoY – its least expensive given that the IPO)

  • FACEBOOK 2Q AD REV. $1832 B, EST. $1692 B

  • FACEBOOK 2Q MONTHLY ACTIVE USERS 2.70 B, EST. 2.63 B (+12% YoY)

  • FACEBOOK 2Q DAILY ACTIVE USERS 1.79 B, EST. 1.74 B (+13% YoY)

We do note that Free Capital fell substantially …

Looking ahead, Facebook sees DAUs and MAUs “flat to slightly down QoQ,” and ad revenue for Q3 in line with July(which offered the boycott may suggest weaker) and anticipates FY20 CapEx at the high of the $14-16 bn range.

In the very first 3 weeks of July, our year-over-year advertisement revenue growth rate was around in-line with our second quarter 2020 year-over-year ad income development rate of 10% We anticipate our full quarter year-over-year advertisement income development rate for the 3rd quarter of 2020 will be approximately similar to this July performance.”

This sent out FB shares up practically 9% after hours to a brand-new record high …

Facebook describes a number of elements contributing to its outlook, including:

  • Initially, continued macroeconomic uncertainty, including the rate of recovery and the potential customers for additional financial stimulus;-LRB- .

  • 2nd, our expectation that a few of the recent surge in neighborhood engagement will normalize as areas resume;-LRB- .

  • Third, the effect from particular advertisers stopping briefly spend on our platforms connected to the existing boycott, which is reflected in our July patterns; and

  • Finally, headwinds related to advertisement targeting and measurement, including the effect of guideline, such as the California Customer Privacy Act, in addition to headwinds from expected changes to mobile operating platforms, which we anticipate will be significantly substantial as the year progresses.

Finally, we note that Facebook’s headcount was 52,534 since June 30, 2020, a boost of 32% year-over-year.

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