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.

Share:
More In Technology
Developing Resilient Technology and Solving Real-World Problems
The annual Edison Awards dive into the latest in the world of technology and innovation. Each year at the ceremony, the Edison Lifetime achievement is awarded to select individuals who have made a difference in the space. Cheddar News sat down with the 2022 honoree, Carmichael Roberts, co-founder and managing partner at Material Impact, to discuss.
Car Crash Tests Have A Major Flaw
In February 2022, over 65 congressional members sent a letter to Secretary Buttigieg and the Department of Transportation urging the agency to update certain safety standards when it comes to crash testing. So, what exactly are advocates calling for and why do they say our crash tests need a major update?
What Elon Musk Might Do After Taking Twitter Private
Amid a spate of Big Tech earnings reports on the horizon, social media giant Twitter accepted Elon Musk’s $44 billion offer to buy the platform. Musk has already signaled his intention to take the company private, and Angelo Zino, a senior equity analyst for CFRA, joined Cheddar News to talk about tech-related business news and what taking Twitter private could mean for the company. "His kind of vision is clearly on softening his stance on content moderation. You're going to see him do it, and we'll kind of see what else he has in store in terms of the pipeline of enhancing the product out there," Zino said about Musk's plans. "But there's a lot more he can do as a private company than he can do as a public company."
UPSIDE Foods Raises $400 Million to Commercialize Cultivated Meat at Scale
UPSIDE foods, a company that makes cultivated meat products, recently raised $400 million in a Series C round. UPSIDE says it's developing a way to grow real meat, poultry, and seafood, without the need to raise animals for human consumption. It's a process that gets the attention of some big-name backers, including Bill Gates and Richard Branson. Dr. Uma Valeti, Founder and CEO of UPSIDE Foods, joins Cheddar News' Closing Bell to discuss.
Load More