Thursday, May 4, 2017

Earnings - Facebook

Just about every investor clamors to hear from Apple(AAPL), and Facebook(FB). Since only Facebook is in the portfolio I'll only be commenting on that one. Sorry!!

Facebook(FB) reported Q1 results with EPS of $1.04 on revenues of $8 billion(up 49%).  What is really good to see is
net income increased 75% from $1.74 billion to $3.06 billion.  You like to see income growing more than sales since it means more of every dollar falls to the bottom line. That's a sign of a great cost structure and business. DAU's were up 18%, and MAU's were up 17% to a staggering 1.94 billion accounts. The company has $32 billion worth of cash on hand, which is bigger than the market cap for 99% of all companies. The stock is taking a dip of about 3% after hours. We will see what Thursday's trading brings. The stock was getting overbought on the daily chart so maybe it was just a matter of timing.

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