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PM Bulletin: Gold
29 Jan 2016
AM Bulletin: BOJ takes rate negative
29 Jan 2016
PM Bulletin: BOJ in focus
28 Jan 2016
AM Bulletin: FOMC disappoints, but earnings offer support
28 Jan 2016
PM Bulletin: Facebook reports after the close
27 Jan 2016
AM Bulletin: Crude still driving equities
27 Jan 2016
PM Bulletin: Tomorrow’s FOMC meeting
26 Jan 2016
AM Bulletin: Equities slide on crude sell-off
26 Jan 2016
PM Bulletin: Silver chart
25 Jan 2016
Weekly Bulletin: Promise of further stimulus halts equity slide
25 Jan 2016
PM Bulletin: EURUSD chart
22 Jan 2016
AM Bulletin: Equities rally on ECB and oil
22 Jan 2016
PM Bulletin: Dovish Draghi triggers euro sell-off
21 Jan 2016
AM Bulletin: ECB meeting in focus
21 Jan 2016
PM Bulletin: Crude makes fresh multi-year lows
20 Jan 2016
AM Bulletin: Stocks slide as oil slumps
20 Jan 2016
PM Bulletin: Bank of Canada rate decision
19 Jan 2016
AM Bulletin: Equities surge on relief rally
19 Jan 2016
PM Bulletin: Crude oil - long-term charts
18 Jan 2016
Weekly Bulletin: China and oil weigh on equities
18 Jan 2016
PM Bulletin: Long-term gold bullion chart
15 Jan 2016
AM Bulletin: More woe from China
15 Jan 2016
Holiday Schedule: Martin Luther King Day Monday 18th January 2016
14 Jan 2016
PM Bulletin: Equities: bull or bear?
14 Jan 2016
AM Bulletin: Investors remain jittery
14 Jan 2016
PM Bulletin: The Bank’s rate decision
13 Jan 2016
AM Bulletin: Oil rebound lifts stocks
13 Jan 2016
PM Bulletin: Saudi Aramco’s IPO
12 Jan 2016
AM Bulletin: Crude closes in on $30
12 Jan 2016
PM Bulletin: US Fourth Quarter Earnings Season
11 Jan 2016
Weekly Bulletin: 2016: Trouble ahead?
11 Jan 2016
January: Non Farm Payrolls Out Today
08 Jan 2016
PM Bulletin: Another blow-out payroll number
08 Jan 2016
AM Bulletin: China effect calms markets
08 Jan 2016
PM Bulletin: Non-Farm Payroll look-ahead
07 Jan 2016
AM Bulletin: Equities slump after 2nd China trading halt
07 Jan 2016
AM Bulletin: Investors remain jittery
06 Jan 2016
AM Bulletin: China steadies and Europe rallies
05 Jan 2016
AM Bulletin: Chinese equities plunge
04 Jan 2016
 
 
 Wednesday 27 January 2016

PM Bulletin: Facebook reports after the close

 

 

    
Facebook (FB) reports earnings after tonight’s close. The “Social Network” remains a market darling although it has lost around 11% since hitting an all-time high back in November. In this regard it is much in line with the broader market with the S&P500 down around 10% over the same period. Yet over the past twelve months Facebook is up around 32% while the S&P has lost 5%. Facebook is one of the FANG stocks (Facebook, Amazon, Netflix and Google (Alphabet)) which did so much to support the broader US market over 2015.The big question now is if the FANGs can now garner the same level of bullish interest as doubts creep in about the state of the global economy.

The expectation is that Facebook will report another solid quarter. It has certainly eclipsed its rival Twitter in terms of user numbers and monetising its product. Analysts at Bank of America expect Facebook to report strong advertising revenues from both its main platform and Instagram.

These are the consensus estimates for the fourth quarter that investors will be looking out for after the close:

Revenues of $5.37 billion (compared with $3.85 billion for the same period last year)

Earnings of $0.68 per share (up from $0.54 for the same period last year)

Analysts will also pay close attention to monthly active-user growth. This is expected to come in around 1.58 million, up from 1.55 million. Meanwhile daily active users (which broke above 1 billion for the first time last quarter) are predicted to come in around 1.03 billion users this quarter.

In the current climate investors will want to see the numbers for earnings, revenues and active users come in above expectations for Facebook to rally further. However, they will be mindful of what happened when Netflix released its fourth quarter 2015 financial results back on the 19th January.

These were considered to be a strong set of numbers. Initially the stock shot up by around 10% in after-hours trading taking it above $123. But the move was reversed quickly and Netflix is now trading around $97. It could be that traders will be on the look-out for a similar move tonight.

But it’s worth bearing in mind that Amazon releases its earnings tomorrow. The results for all the FANGs will be in on Monday when Google (Alphabet) reports.


Disclaimer:

Spread Co is an execution only service provider. The material on this page is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by Spread Co Ltd or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

 

Posted by David Morrison

Tagged: Bulletin PM

Category: PM Bulletin


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