Facebook share price: where next after strong Q3 sees uptick in users
Despite suffering a public relations nightmare, the social media company recorded a strong set of third quarter results that saw revenues rise and users increase.
Last week, Facebook reported a strong set of third-quarter (Q3) results that saw its daily active users increase 2% to 1.62 billion and revenue rise 29% year-over-year to $17.6 billion.
‘We had a good quarter and our community and business continue to grow,’ Facebook founder and chief executive officer (CEO) Mark Zuckerberg said. ‘We are focused on making progress on major social issues and building new experiences that improve people's lives around the world.’
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Facebook earnings beat expectations
The social media company’s strong quarterly performance translated into the business generating $2.12 in earnings per share (EPS) – beating analysts' forecast of $1.91 EPS.
In the wake of its Q3 results, Facebook saw its shares climb 5%, with the stock trading at $194.72 a share as of 11:45 GMT on Tuesday.
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Forecasters are upbeat about Facebook’s share price. Based on 31 Wall Street analysts the average price target for the stock is $234.04, with a high estimate of $270 and a low of $120 a share, according to TipRanks.
Facebook catches flak for defending political ads
The social media company came under fire for not banning political ads and for refusing to fact-check candidates’ advertisements on its platform.
‘At times of social tension there has often been an urge to pull back on free expression . . . We will be best served over the long term by resisting this urge and defending free expression,’ Zuckerberg said.
‘I believe that the better approach is to work to increase transparency. Ads on Facebook are already more transparent than anywhere else,’ he added.
Zuckerberg’s sentiments differ from those expressed by Twitter CEO Jack Dorsey, who announced he will ban political ads on his platform.
Gerber Kawasaki bullish on US tech
Following earnings announcements from Apple and Facebook, Ross Gerber, CEO at Gerber Kawasaki, explains why he is bullish on the tech sector overall. However, he is bearish on Facebook within the group. Gerber also comments on Twitter’s decision to impose a global ban on political advertising on its platform.
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