Facebook, Inc. (FB) And Twitter Inc (TWTR) Plunged Despite Impressive Results

Facebook, Inc. (FB) took a dip of -6.3 percent on Friday after issuing very mixed results on Thursday. In the third quarter, Mark Zuckerberg’s social network exceeded expectations, but cautioned that 2021 will be a harder-than-expected year. For 2021, amid a certain degree of uncertainty the company cited volatile developments in online spending during the post-pandemic, regulatory uncertainties and looming improvements in privacy plans.

On a conference call, Dave Wehner, Chief Financial Officer of Facebook, said that expenses would rise in the fourth quarter due to back-to-work costs, increased headcount, product expenditures and higher legal costs. He noted that the company expected margins to decline accordingly without providing clear revenue indications, while Facebook expects its advertisement revenue to increase.

The Menlo Park-based corporation saw sales jump 22 percent to $21.47 billion from a forecast of $19.8 billion in the three months ended in September. Net income grew 29 percent from the $1.91 billion anticipated by analysts to $7.85 billion, or $2.71 per share. Moreover, the number of monthly active users hit 2.74 billion during the period, beating industry expectations.

Twitter Inc (TWTR) fell by 21.1%. For the third quarter of 2020, the company posted net income of $29 million, down 21 percent from the same time in 2019. Earnings per share, which was still well above market estimates of just 6 cents, were 19 cents. Thanks to the return of ads, social network revenues have surpassed estimates of $936.2 million (up 14% year-on-year) compared to $777.15 million anticipated by analysts surveyed by FactSet.

Despite these promising figures, the company was disappointed when it announced a rise of just one million “monetized” users per day to 187 million in the third quarter. Analysts had expected 196 million active users in total. “Furthermore, after the U.S. election, the blue-chip company expressed concern about changes in the online advertising market. In the run-up to the election, however, it is difficult to predict how the behavior of advertisers could shift, Twitter said.

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

Leave a Comment

Your email address will not be published. Required fields are marked *

On Key

Related Posts

Get The Best Stocks To Trade Every Day!

Join now to get the Newsheater.com pre-market morning brief 100% free

We do not sell or share your information with anyone.

Get Best Morning Financial Newsletter... 100% Free

Best stocks ideas

Analysts’ Upgrades & Downgrades

Important Earnings

Insider Watchlist

We do not sell or share your information with anyone.