Oct 30, 2019

Facebook stock rises on earnings beat

Photo: Thomas Trutschel/Photothek via Getty Images

Facebook stock was up nearly 4% in after-hours trading on Wednesday after the tech giant reported that it beat Wall Street expectations on earnings per share and revenue.

Why it matters: The company has been warning for several quarters that ad growth (where nearly all of its revenue comes from) is expected to slow late this year due to saturation in its main News Feed. As a result, Facebook has been investing more in monetizing its "Stories" feature on both its main app and Instagram.

Be smart: The company has faced increased competition from other tech giants for ad revenue and engagement. Amazon has notably begun to eat into its ad market share slightly. TikTok has also started to steal attention from younger users.

By the numbers via CNBC:

  • Earnings: $2.12 vs. $1.91 per share forecast by Refinitiv.
  • Revenue: $17.65 billion vs. $17.37 billion forecast by Refinitiv.
  • Daily active users: 1.62 billion vs. 1.61 billion forecast by FactSet.
  • Monthly active users: 2.45 billion vs. 2.45 billion forecast by FactSet.
  • Average revenue per user: $7.26 vs. $7.09 forecast by FactSet.

Between the lines: Facebook has faced criticism over the past few weeks after saying it would not fact-check ads from political candidates or politicians. Facebook rival Twitter announced at the same time Facebook released its earnings report that it would no longer accept any political or advocacy ads globally.

Go deeper

Updates: George Floyd protests enter 12th day

Protesters in Washington, D.C. on June 6. Photo: Samuel Corum/Getty Images

Tens of thousands of demonstrators are rallying in cities across the U.S. and around the world to protest the killing of George Floyd. Huge crowds have assembled in Washington, D.C., Philadelphia and Chicago for full-day events.

Why it matters: Twelve days of nationwide protest in the U.S. has built pressure for states to make new changes on what kind of force law enforcement can use on civilians and prompted officials to review police conduct.

Updated 2 hours ago - World

In photos: People around the world rally against racism

Despite a ban on large gatherings implemented in response to the coronavirus pandemic, protesters rally against racism in front of the American Embassy in Paris on June 6. Photo: Julien Mattia/Anadolu Agency via Getty Images

Tens of thousands of people have continued to rally in cities across the world against racism and show their support this week for U.S. demonstrators protesting the death in police custody of George Floyd.

Why it matters: The tense situation in the U.S. has brought the discussion of racism and discrimination onto the global stage at a time when most of the world is consumed by the novel coronavirus.

Updated 3 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7:30 p.m. ET: 6,852,810 — Total deaths: 398,211 — Total recoveries — 3,071,142Map.
  2. U.S.: Total confirmed cases as of 7:30 p.m. ET: 1,917,080 — Total deaths: 109,702 — Total recoveries: 500,849 — Total tested: 19,778,873Map.
  3. Public health: Why the pandemic is hitting minorities harder — Coronavirus curve rises in FloridaHow racism threatens the response to the pandemic Some people are drinking and inhaling cleaning products in attempt to fight the virus.
  4. Tech: The pandemic is accelerating next-generation disease diagnostics — Robotics looks to copy software-as-a-service model.
  5. Business: Budgets busted by coronavirus make it harder for cities to address inequality Sports, film production in California to resume June 12 after 3-month hiatus.
  6. Education: Students and teachers flunked remote learning.