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).
Nvidia on Wednesday became the first public company to reach a market capitalization of $5 trillion. The ravenous appetite for the Silicon Valley company’s chips is the main reason that the company’s stock price has increased so rapidly since early 2023.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
