Facebook to show higher revenues in Q3 despite legal backlash – Stock Market News Posted on October 30, 2019 at 11:24 am GMT A A+
Facebook Inc.is in a tough battle with regulatory authorities and central banks around the world like no other company as its large size and its recent malpractices in data protection stand as a barrier in developing new products.Despite that, the social giant which releases financial results for the third quarter after the market close on Wednesday is expected to prove its resilience once again as its stock does on Wall Street.
Legal troubles challenge future projects
Having paid a $5 billion settlement with the Federal Trade Commission following the Cambridge Analytica data privacy scandal in 2018 and later facing additional antitrust probes, it is difficult for Facebook to regain Congressional trust on new ideas, especially if that means influence in the currency system.Zuckerberg set the alarm in the banking sector after surprisingly announcing the launch of its Libra cryptocurrency as early as in June 2020, with central bankers and regulators strongly opposing the idea as the digital currency that will be backed by a reserve of main currencies could disrupt monetary control and enhance money laundering not only in the US but also globally given the Company’s massive user base and the fast transaction feature of digital currencies.
Indeed, unless Facebook addresses its data security and other social failures and provides efficient solutions, it will struggle to obtain any regulatory approval for its new projects, including the recent news app, something the US Congress clearly messaged last week, even threatening to shut the social media platform.On Wednesday, however, Facebook will prove it has enough financial power to keep fighting any legal barrier despite some softness in Q3 numbers.
Earnings expectations
In the third quarter, daily active users are expected to have increased to 1.61 billion from 1.59bln in the previous quarter, marking a yearly increase of 8.1%, while monthly users are forecast to have risen to 2.44bln from 2.41bln, registering an annual growth of 7.6%.
Revenues are forecast to keep the upward direction and reach $17.3bln in the three months to September, which is 26.5% up on a yearly basis and almost 3.0% higher than in the preceding quarter.Analysts predict another remarkable pickup in the next quarter, with the Company generating $70.2bln by the end of the year, 27% stronger than in 2018 thanks to income from advertisement and demand in the US and Canada.
On the negative side, earnings per share are said to have inched down to $1.91 from $1.99 but to stand 8.5% up on a yearly basis.
Technical levels to watch
Despite the legal controversies, the Company, which owns the popular Instagram and WhatsApp as well is still trusted by its users and is invaluable to advertisers who want to reach customers through famous social platforms where more than a third of the global population visits consistently during the day.
Facebook’s stock performance on Wall Street reflects that.Despite easing in the third quarter the stock remains elevated since the end of 2018, maintaining the long-term uptrend and outperforming the broader S&P 500 index.A stronger than expected outcome on Wednesday could see the stock retesting the 191.50-195.00 resistance area, while in case the data disappoint, the focus will shift to the 182-177.00 support zone.
In terms of competition, besides the money market, Facebook is pushing efforts to expand in other areas too.In September, it agreed to buy the 4-year old CTRL-labs company that develops a bracelet which allows consumers to control computers with their minds, while in November it will start shipping its Portal TV along with its Portal and Portal Mini screens.Moreover, in partnership with Disney’s ESPN Division, exclusive shows, and other videos will be available on Facebook Watch, while it is also expected to provide sports video content, adding some pressure to Twitter and Amazon.
Facebook stocks Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments.XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it.
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.The research and analysis does not involve any 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 research, and as such it is considered to be marketing communication.
Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients.We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients.We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.CFDs are leveraged products.CFD trading everyone and can result in losing all of your invested capital, so please make sure that the risks involved.Previous Posts October 23, 2019 at 2:58 pm GMT Previous Posts October 23, 2019 at 2:58 pm GMT Categories 8 x Olympic Champion & 11 x World Champion Follow us:
© 2019 XM is a trading name of Trading Point Holdings Ltd.All rights reserved.| Privacy Policy | Cookie Policy | Terms and Conditions
Legal: XM.COM is a trading name of Trading Point Holdings Ltd, registration number: HE 322690, (12 Richard & Verengaria Street, Araouzos Castle Court, 3rd Floor 3042 Limassol, Cyprus), which wholly owns Trading Point of Financial Instruments Ltd (Cyprus), registration number: HE 251334, (12 Richard & Verengaria Street, Araouzos Castle Court, 3rd Floor, 3042 Limassol, Cyprus).
This website is operated by Trading Point of Financial Instruments Ltd.
Trading Point of Financial Instruments Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 120/10, and registered with FCA (FSA, UK), under reference no.
538324.Trading Point of Financial Instruments Ltd operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.
FCA (FSA, UK) , ref.no.538324 | BaFin reg.
124161 | CNMV reg.2774.
Risk Warning: Forex and CFD trading involves significant risk to your invested capital.Please read and ensure our Risk Disclosure .
Restricted regions: Trading Point of Financial Instruments Ltd does not provide investment and ancillary services in the territories of third countries.This website uses cookies
By clicking “Continue” , you agree to the default cookie settings on our website.CONTINUE
XM uses cookies to ensure that we provide you with the best experience while visiting our website.Some of the cookies are needed to provide essential features, such as login sessions, and cannot be disabled.
Other cookies help us improve our website’s performance and your experience through personalising content, providing social media features and analysing our traffic.Such cookies may also include third-party cookies, which might track your use of our website.You may change your cookie settings at any time.Read more, or change your cookie settings.Your cookie settings Change Settings
What are Cookies?
Cookies are small data files.
When you visit a website, the website sends the cookie to your computer.Your computer stores it in a file located inside your web browser.
Cookies do not transfer viruses or malware to your computer.Because the data in a cookie does not change when it travels back and forth, it has no way to affect how your computer runs, but they act more like logs (i.e.they record user activity and remember stateful information) and they get updated every time you visit a website.
We may obtain information about you by accessing cookies, sent by our website.Different types of cookies keep track of different activities.
For example, session cookies are used only when a person is actively navigating a website.Once you leave the website, the session cookie disappears.ENABLE ALL COOKIES AND CLOSE
Why are cookies useful?
We use functional cookies to analyse how visitors use our website, as well as track and improve our website’s performance and function.This allows us to provide a high-quality customer experience by quickly identifying and fixing any issues that may arise.For example, we might use cookies to keep track of which website pages are most popular and which method of linking between website pages is most effective.
The latter also helps us to track if you were referred to us by another website and improve our future advertising campaigns.
Another use of cookies is to store your log in sessions, meaning that when you log in to the Members Area to deposit funds, a “session cookie” is set so that the website remembers that you have already logged in.If the website did not set this cookie, you will be asked for your login and password on each new page as you progress through the funding process.
In addition, functional cookies, for example, are used to allow us to remember your preferences and identify you as a user, ensure your information is secure and operate more reliably and efficiently.
For example, cookies save you the trouble of typing in your username every time you access our trading platform, and recall your preferences, such as which language you wish to see when you log in.
Here is an overview of some of the functions our cookies provide us with: Verifying your identity and detecting the country you are currently visiting from Checking browser type and device Tracking which site the user was referred from Allowing third parties to customize content accordingly
This website uses Google Analytics, a web analytics service provided by Google, Inc.(“Google”).Google Analytics uses analytical cookies placed on your computer, to help the website analyze a user’s use of the website.
The information generated by the cookie about your use of the website (including your IP address) may be transmitted to and stored by Google on their servers.
Google may use this information to evaluate your use of the website, to compile reports on website activity and to provide other services related to website activity and internet usage.Google may also transfer this information to third parties, where required to do so by law, or where such third parties process the information on behalf of Google.Google will not associate your IP address with any other data held.By using this website, you give your consent to Google to process data about you in the manner and for the purposes set out above.ENABLE ALL COOKIES AND CLOSE
Change Settings
Please select which types of cookies you want to be stored on your device.Functional cookies These cookies are essential for the running of our website.Without these cookies our websites would not function properly.
These are saved temporarily as login information and expire once the browser is closed.
Analytical cookies The information provided by analytical cookies allows us to analyse patterns of visitor behaviour and we use that information to enhance the overall experience or identify areas of the website which may require maintenance.
The information is anonymous (i.e.it cannot be used to identify you and does not contain personal information such as your name and email address) and it is only used for statistical purposes.Behavioral cookies are similar to analytical and remember that you have visited a website and use that information to provide you with content which is tailored to your interests.
Promotional cookies These cookies are used to track visitors across websites.The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
Preferences cookies Preference cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in.ENABLE ALL COOKIES AND CLOSE SAVE SETTINGS AND CLOSE We are using cookies to give you the best experience on our website.
Read more or change your cookie settings.ACCEPT ALL COOKIES
Risk Warning: Your capital is at risk.Leveraged products everyone.Please consider our Risk Disclosure .XM Live Chat
By clicking the “Enter” button, you agree for your personal data provided via live chat to be processed by Trading Point of Financial Instruments Ltd, as per the Company’s Privacy Policy , which serves the purpose of you receiving assistance from our Customer Support Department.
If you do not give your consent to the above, you may alternatively contact us via the Members Area or at .
All incoming and outgoing telephone conversations, as well as other electronic communications (including chat messages or emails) between you and us will be recorded and stored for quality monitoring, training and regulatory purposes..
