Facebook share price: 3 things we learnt from Q1 results
The social media app's earnings report taught investors and Wall Street three important facts.
Facebook share price is slightly down days after a positive Q1 earnings report. Investors gained three main insights about Facebook’s Q1 profits.
Facebook’s Q1 results were affected by the Cambridge Analytica scandal
Facebook’s Q1 earnings were impacted by the Cambridge Analytica data mining scandal. The social media company put aside $3 billion from its profits to pay fines from the US Federal Trade Commission(FTC). The corporation addressed the fines in a statement.
‘In the first quarter of 2019, we reasonably estimated a probable loss and recorded an accrual of $3.0 billion in connection with the inquiry of the FTC into our platform and user data practices,’ noted Facebook.
Security is still an issue after Facebook’s Q1 earnings
Facebook’s Q1 earnings report also shows that security of user data is still vital to the corporation. After a series of data breaches, Zuckerberg wrote in a post on Facebook that he wanted to ensure that user data will be better protected in the future.
‘I believe the future of communication will increasingly shift to private, encrypted services where people can be confident what they say to each other stays secure and their messages and content won't stick around forever. This is the future I hope we will help bring about,’ wrote Zuckerberg.
Zuckerberg also noted that he wanted to build more privacy measures around the corporation’s Facebook Marketplace payment feature.
Facebook's Q1 revenue grew from an increase in users and advertisers
Despite the data breaches, Facebook’s Q1 profits were helped by an uptick in daily active users. The company also added more advertisers that want to reach the 1.6 billion visitors that come to Facebook daily. Facebook will also make dramatic design changes to the site to update its look and potentially attact more users.
Facebook’s Q1 earnings rose despite the controversies the company confronted. Now the social media company has to show that Facebook can secure user data so visitors will continue to trust the site.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Act on stock opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
