Facebook Crushes Q1 Revenue Goals, Races Towards $1 Trillion Market Value
The social network’s stock pops 5% after reporting $26.2 billion in first quarter sales
Facebook on Wednesday topped Wall Street’s Q1 sales and earnings estimates when it shared its first financial report, helping push the company’s share price 5% higher in after hours trading. The stock market bump puts Facebook within striking distance of becoming the next trillion-dollar tech giant.
Facebook reported earnings per share of $3.30, coming in well above the $2.37 EPS analysts had projected. The company also reported its second-best quarter ever in terms of sales, reporting $26.2 billion in revenue; analysts had expected 23.7 billion in Q1 sales. Facebook’s Q1 sales increased 48% from the same time last year.
The company also reported 1.88 billion daily users, up 8% year-over-year. Monthly active users increased 10% year-over-year to 2.85 billion overall. Facebook reported flat growth in the U.S. and Canada, where it has 195 million users. Facebook also said 2.72 billion people use at least one of its apps –which includes Instagram, Messenger and WhatsApp — on a daily basis.
The company’s share price jumped 5% in early-after market trading, pushing Facebook to $322 per share. If those gains hold on Thursday, Facebook would hit a new all-time high on Wall Street. That jump also means Facebook is now worth about $915 billion, pushing it closer to being the next tech titan valued at $1 trillion. (The other tech companies in the $1 trillion club include Apple, Amazon, and Alphabet, Google’s parent company.)
“We had a strong quarter as we helped people stay connected and businesses grow,” Facebook CEO Mark Zuckerberg said in a statement. “We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy.”
More to come..
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