Facebook is expected to report first-quarter earnings and revenue in extended trading on Wednesday, and investors will be watching for clues on how the social network plans to monetize its key Stories feature.
Wall Street anticipates that the company will report earnings of $1.63 per share ー down from $1.69 a year ago ー and revenue of $14.9 billion, according to analysts surveyed by Thomson Reuters.
Facebook ($FB) shares have rebounded close to 50 percent since December lows. The stock had weakened throughout 2018 following a series of data breaches and privacy scandals. Its recovery suggests investors may be feeling confident Facebook can weather future regulatory or privacy challenges that come its way.
That doesn't, of course, discount any more potential revelations regarding Facebook's privacy mismanagement. Facebook disclosed on Apr. 19 ー the same day that Special Counsel Robert Mueller's report on Russia and the White House dropped ー that login info for millions of Instagram users had been stored in a readable format on Facebook's internal servers, Common Dreams reported.
Facebook's fourth-quarter results reinforced investor optimism. The company reported stronger than anticipated earnings and revenue, despite ongoing controversy over the company's handling of privacy and its users' data. The company's earnings jumped 68 percent since the previous year and revenue climbed by about 61 percent, CNBC reported. Facebook also saw daily active users grow in its core Facebook product, even the U.S., where active users had previously plateaued.
The company also announced last quarter it would stop breaking out active users for its core Facebook platform, instead wrapping them into metrics from its other properties. That move would likely hide stagnation for Facebook, but also could hamper bigger growth numbers from products like Instagram.
Lastly, Facebook has been laser-focused on its Stories features and messaging apps. CEO Mark Zuckerberg said Facebook will shift focus toward encrypted and private messaging, despite the company's rather checkered history with privacy. Facebook execs could share clarification on its plans to monetize Stories and unify messaging on a call with investors after the social media giant reports earnings.
Gparency, a company that says its mission is to revolutionize the commercial mortgage industry, raised $15 million in its first funding round - representing the largest ever seed round in the commercial real estate space. Gparency's service will allow landlords and real estate developers to receive funding directly from banks, without the need for a mortgage broker. The company says its new approach will give power back to the consumer. Gparency founder and CEO Ira Zlotowitz joins Cheddar News' Closing Bell to discuss.
Rapper and singer T-Pain is teaming up with Google this holiday season to encourage shoppers to support Black-owned businesses on Black Friday. Stephanie Horton, the director of marketing for Google Shopping, joined Cheddar to provide some details about T-Pain's new song, featuring Normani, in a new shoppable interactive film for the promotion. She also explained how Google worked with local artists in various states to create shoppable murals, where products seen in the artwork are discoverable online by simply pointing your camera at it.
Per a request from the UK singing sensation Adele after her new album "30" dropped on Friday, Spotify removed shuffle play as the default for albums. Adele tweeted about her request to the streaming service, arguing that an album's track sequence is intentional and that the songs should be listened to in that order.
Caleb Silver, the Editor-in-Chief for Investopedia, joined Wake Up With Cheddar to break down the latest in the Activision Blizzard sexual misconduct scandal. After 1,700 of the embattled video game maker's employees signed a petition demanding CEO Bobby Kotick step down, Kotick reportedly said he would step down if he can't turn the toxic workplace culture around quickly. Silver noted that the allegations go back years with settlements and lawsuits that indicate Kotick would have to be claiming ignorance of his own business or deliberately obfuscating his knowledge of what happened under his watch.
In 2022, all 3G networks will shutdown permanently. Sprint will be leading the charge as the first network to go dark on New Year's Day, and the rest will follow shortly thereafter. Ryan Johnston of Next Century Cities joins Cheddar News to discuss the importance of the shutdown, and how users who may be affected can act fast before they're left disconnected.
Jill and Carlo cover the developing story out of suburban Milwaukee, where a speeding SUV careened through a Christmas parade. Looters get more brazen in San Francisco, the missing Chinese tennis star resurfaces, and more.
