Jan 29, 2020

Facebook shares dip after Q4 earnings

Photo: Thomas Trutschel/Photothek via Getty Images

Facebook stock was down more than 6% in after-hours trading on Wednesday after the tech giant reported that it beat Wall Street's earnings expectations on revenue, but only marginally beat them on earnings per share.

Why it matters: Despite increased scrutiny around issues like privacy and election security, regulatory setbacks and heightened competition from new apps like TikTok, Facebook has continued to grow its audience and revenue.

By the numbers via CNBC:

  • Earnings (EPS): $2.56 vs. $2.53 per share forecast by Refinitiv.
  • Revenue: $21.08 billion vs. $20.89 billion forecast by Refinitiv.
  • Daily active users (DAUs): 1.66 billion vs. 1.65 billion forecast by FactSet.
  • Monthly active users (DAUs): 2.5 billion vs. 2.5 billion forecast by FactSet.
  • Estimated average revenue per user (ARPU): $8.38, per FactSet

Be smart: Facebook doesn't break out usage for its individual apps other than Facebook, but it does provide a "family of apps" user metric, which represents daily and monthly usage of Instagram, Whatsapp, Facebook and Facebook Messenger. Facebook says both metrics increased roughly 10% year over year.

  • Family daily active people (DAP): 2.26 billion, 1% year-over-year.
  • Family monthly active people (MAP): 2.89 billion, up 9% year-over-year.

The big picture: Facebook encountered several high-profile setbacks over the past quarter, which has resulted in record scrutiny from regulators in the U.S. and abroad. Most notably, policymakers pushed back on its plan to launch its own cryptocurrency, and many industry leaders and politicians slammed the company's decision not to fact-check political ads.

Go deeper: Facebook won't stop letting politicians lie in ads

Go deeper

Atlanta mayor on Trump's riot response: "He speaks and he makes it worse"

Atlanta Mayor Keisha Lance Bottoms responded on CNN's "State of the Union" Sunday to President Trump's tweets and comments about the mass protests that have swept across the United States, urging him to "just stop talking."

What she's saying: "This is like Charlottesville all over again. He speaks and he makes it worse. There are times when you should just be quiet. And I wish that he would just be quiet."

Black Americans' competing crises

Illustration: Eniola Odetunde/Axios

For many black Americans, this moment feels like a crisis within a crisis within a crisis.

The big picture: It's not just George Floyd's killing by police. Or the deaths of EMT Breonna Taylor and jogger Ahmaud Arbery. Or the demeaning of birdwatcher Christian Cooper and journalist Omar Jimenez. Or the coronavirus pandemic's disproportionate harm to African Americans. It's that it's all happening at once.

Amnesty International: U.S. police must end militarized response to protests

Washington State Police use tear gas to disperse a crowd in Seattle during a demonstration protesting the death of George Floyd. Photo: Jason Redmond/AFP via Getty Images

Amnesty International issued a statement on Sunday morning calling for an end to militarized policing in several U.S. cities and the use of "excessive force" against demonstrators protesting police brutality.

Why it matters: The human rights group said police across the country were "failing their obligations under international law to respect and facilitate the right to peaceful protest, exacerbating a tense situation and endangering the lives of protesters."