facebook hits new record highs

Can Facebook Look Past Apple’s Privacy Updates?

Facebook is always in trouble morally, but we’re wondering if it is going to be in financial trouble following tonight’s earnings report?

It’s somewhat a day of reckoning for Facebook (NASDAQ: FB) which, following months of scandals and hiccups, must now reveal just how devastating iOS 14.5 has been to its business. 

Oh, and also maybe give us hints as to its new name…

…but first, what to expect from Facebook’s earnings call!

Snap Inc’s disastrous earnings call last Thursday was a real eye-opener for investors regarding the damage that Apple’s update can cause. The social media and AR specialist missed revenue estimates and predicted further pain to come in Q4. 

So naturally, investors fear the worst for Facebook et al. 

At the moment, an average of total analyst estimates expects Facebook to report earnings of $3.18 per share, up from $2.71 a share a year ago, while revenue is expected to come in at a whopping $29.5 billion, versus $21.47 billion a year ago. And, of course, who can forget Facebook’s monthly active users, which the experts predict will surpass 2.92 billion.

So, if the experts expect those great numbers, surely they can’t be wrong? Right?

While an educated guess might be, well, educated, it is still a guess. Facebook has experienced two major outages in the past month, it’s embroiled in numerous data and user safety scandals, and its share price is down 15% since the start of December. Things could be better. 

However, the company is expected to expand on its metaverse (virtual universe) products this week, as well as unveil a new name — Horizon appears to be leading amongst the bookies.

And let’s be honest, Facebook tends to survive scares with few ramifications. While iOS 14.5 may begin to have an adverse impact on the company in the coming months, it’s clear that Zucks & Co. have a plan to diversify revenue. If anything, investors should be excited about how the company reacts tonight. I know we’ll be watching…