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).
A $1 billion loss from a six-week strike did not crash GM's net income last year, which instead rose 12% — and the automaker expects improvement in 2024, too.
Accrue CEO and founder Michael Hershfield explains why Americans' credit card delinquencies are on the rise, advice on what can help, and the key difference between Boomers and Gen Z when it comes to money.
Senior Economist at Morning Consult Kayla Bruun shares thoughts on what to expect from the Fed's January meeting and where monetary policy is headed, as well as how consumers are faring.
Former Medtronic CEO and author of 'True North' Bill George explains the steps Boeing leadership must take to regain client and consumer trust after 737 Max 9 production was stopped.
Amazon blamed "regulatory hurdles" for calling off its proposed acquisition of robot vacuum maker iRobot. Not even a Roomba could clean up the deal's antitrust scrutiny.
To celebrate Flutter Entertainment's debut on the NYSE, FanDuel CEO Amy Howe shares her thoughts on the company's plans for growth, the future of online sportsbetting, and Super Bowl Sunday.
Investopedia's Caleb Silver shares thoughts on the upcoming Fed meeting, why individual investors are still slightly skeptical, and what he's looking for from mega cap tech earnings.
Season's greetings! Tax season, that is. January 29 is the first day you can file your tax return. We walk you through each step — plus a checklist you can download.
The Q-Collar helps protect athletes from impact-related concussions. Now, the U.S. Army is evaluating if the device could help reduce traumatic brain injury cased by blast weapons.
