Facebook Tumbles On Disappointing DAUs, Warning Revenue Growth Will "Decelerate Significantly" | WHAT REALLY HAPPENED

Facebook Tumbles On Disappointing DAUs, Warning Revenue Growth Will "Decelerate Significantly"

After yesterday's tech bonanza which saw Google surge, Apple fall and Microsoft swing when the 3 gigacaps reported more than $57 billion in net income, we now get the 4th FAAMG - Facebook - before Amazon closes the books on the 5 companies that account for more than 20% of the S&P's market cap.

A quick look at sellside reports reveals that consensus expectations are for revenue of $27.86 billion for the quarter, which would be 49% growth (last year during this quarter, sales jumped just 11% given the advertising pullback surrounding the pandemic so there will be a sizable base effect). Analysts also expect user growth of around 7%, anticipating just under 2.9 billion monthly users for Facebook's core social network. Facebook also reports a “Family” metric that encompasses users for all of its services. On that front, analysts expect 3.49 billion monthly users.

Some context: the ad industry is solid, with Twitter and Snap both reported strong second quarter earnings and Google ad sales rising 69% when it reported earnings yesterday. That explains why Facebook stock is already up 30% YTD.

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