Thursday’s Headlines: Facebook Earnings Marred By Skyrocketing Expenses
1. Facebook beat on top and bottom lines in its earnings report last night, but the stock fell more than 7% on Wednesday after the company reported rising expenses and a narrowing operating margin. Earnings per share came in at $2.56 on revenue of $21.08 billion, versus estimates of $2.53 on $20.89 billion, while daily active users and average revenue per user also beat expectations. However, Facebook’s full-year 2019 costs and expenses came in at $46.71 billion, up 51% compared to its total in 2018, mostly due to numerous regulatory challenges, including a $5 billion FTC fine in July. Get the complete story here.
2. Shares in global dating service Match Group fell more than 3% on Wednesday after CEO Mandy Ginsberg announced that she would be stepping down to deal with personal issues. Employees were informed via memo, as Ginsberg went into detail about what’s been going on in her life including the upheaval of her family due to a tornado, as well as ongoing health problems. Taking Ginsberg’s place, as of March 1, 2020, will be Shar Dubey, who currently serves as Match Group’s president and was formerly Tinder’s chief operating officer. Read the complete story here.
3. Elon Musk can keep on dancing as Tesla reported earnings on Wednesday that blew past expectations, sending its stock price up 13% in after-hours trading. Earnings per share came in at $2.14 on revenue of $7.38 billion versus expectations of $1.72 on $7.02 billion, while automotive gross margins came in at 22.5% for the quarter. Tesla had already reported deliveries of 112,000 vehicles globally during the fourth quarter and expects to “comfortably exceed” 500,000 units in 2020. Read the complete report here.
Here are the other stocks in the MyWallSt shortlist that reported earnings on Wednesday:
Align Technology: The dental service came out with quarterly earnings of $1.53 per share on revenue of $649.79 million, and earnings growth of more than 10%. Read here.
Mastercard: The payment company’s net revenue rose 14% to $2.18 billion, with EPS of $0.73, while worldwide purchase volume increased by 10%. Read here.
Microsoft: The tech giant beat expectations with EPS of $1.51 on revenue of $36.91 billion, while overall revenue is up 14% year to date. Read here.
Paypal: The payment software firm came out with quarterly earnings of $0.86 per share on revenue of $4.96 billion, beating estimates. Read here.