What Data Scandal? Facebook Blows Past Earnings Estimates
*By Michael Teich*
Facebook may have impressed Wall Street with strong advertising revenue and user growth, but the social media company has not yet escaped from the Cambridge Analytica data privacy scandal unscathed, said Scott Devitt, an analyst at Stifel.
Shares of Facebook surged Thursday, a day after the company reported first-quarter advertising revenue grew 50 percent compared with a year ago. The news eased investors’ fears that advertisers would flee the platform after a backlash from users ー and Congress ー about the security of their personal information.
In its earnings call on Wednesday, the company also addressed Europe's new General Data Protection Regulation, warning the new privacy requirements could flatten or reduce the number of active users in Europe when they go into effect May 25.
Devitt said in an interview with Cheddar that he doesn’t see this being a major burden for Facebook, adding that the new rules may only have a minor effect on the number of users abroad.
“The bigger question is fatigue with the platform,” said Devitt, who has a “hold” rating and $175 price target on Facebook stock.
Facebook saw its first-ever decline in users in the U.S. and Canada in the last quarter of 2017, but it got back on track in the first quarter of this year ー it reported 185 million users, up from 184 million last year. Devitt said the revival is a promising sign.
For the full interview, [click here](https://cheddar.com/videos/what-data-scandal-facebook-stock-jumps-on-earnings-beat).
Chris Versace of Tematica Research LLC shares his thoughts on Jerome Powell's latest comments, the timing of those crucial rate cuts, and what semiconductor stocks he's watching closely.
We battle an onslaught of advertising every time we scroll through social media. Deinfluencers propose a less pricey, more honest approach to how we shop online. Could they convince us to spend less?
Scott Gutz, CEO of Monster.com breaks down the company’s Work Watch Report for 2024, including what’s motivating workers to look for new positions and why they should see A.I. as an opportunity.
Tom Graff, Chief Investment Officer, Facet, discusses what the latest jobs report says about this ‘pretty good’ labor market and why the market should worry less about the Fed’s next decision.
Universal Music Group, which represents artists including Taylor Swift, Drake, and Ariana Grande, has removed its music from TikTok and accused the app of bullying and intimidation.
The average rate on a 30-year mortgage fell 0.06% last week. Although the rate is much higher than it was two years ago, the decline could relieve buyers already dealing with low inventory and high prices.
As millions of Americans are set to retire, John Carter, President & COO of Nationwide Financial, shares what to expect and how consumers of all ages can better prepare for their golden years.
