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Tuesday, June 28, 2022

My Take on Facebook’s Earnings

The social media giant shows strong year-over-year (YoY) growth but is it enough for investors? In today’s video, I look at fundamentals and recent earnings for Facebook (NASDAQ:FB), and below I share a few highlights from the video. 

  1. On July 28, after the market closed, Facebook reported its Q2 2021 earnings. Facebook revenue grew 56% YoY, driven by solid growth in its advertisement segment. Facebook did note that it expects a significant deceleration in growth for Q3 and Q4 on a sequential basis. 
  2.  Facebook reported nearly 2.9 billion monthly active users, representing both quarterly and yearly growth. Most of the increase comes from international countries, excluding the U.S., Canada, and European countries. 
  3. During the earnings call, CEO Mark Zuckerberg provided insight into Facebook’s future growth. Facebook is currently focusing its resources on strengthening its content creator platform, e-commerce, digital payments, and augmented and virtual reality hardware. All these markets are strong as individual segments, but Facebook has a long-term plan of uniting them all in its quest to create a metaverse.

Click the video below for my full thoughts and analysis.

*Stock prices used were the premarket prices of July 29, 2021. The video was published on July 29, 2021.

 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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