Facebook stock bounced between positive and negative ground in after-hours trading Tuesday as the social media giant reported third-quarter earnings that beat analyst estimates but fell short on revenue. Facebook (FB) said monthly active users also missed views.
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After the market close Tuesday, Facebook earnings were reported at $1.76 per share, beating analyst forecasts of $1.47. That was up 11% from the year-ago period and its slowest growth in three years.
It reported revenue of $13.7 billion, missing estimates of $13.78 billion. Revenue was up 33% from the year-ago period, its slowest growth in more than four years.
Facebook stock, which initially fell 3% when the earnings report first posted, fluctuated in after-hours action. Shares jumped 4.3% near 152.50 in recent action on the stock market today. Facebook stock is trading near an 18-month low.
The Facebook earnings report also said the company ended the quarter with 2.27 billion monthly active users. That was up 10% from the year-ago period but below estimates of 2.3 billion. It reported having 1.49 billion daily active users, up 9% from the year-ago period but below views of 1.5 billion.
2 Billion Daily Users Overall
In addition, Facebook estimates that more than 2.6 billion people now use Facebook, WhatsApp, Instagram or Messenger each month.
"Our community and business continue to grow quickly, and now more than 2 billion people use at least one of our services every day," Facebook Chief Executive Mark Zuckerberg said in prepared remarks. "We're building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well."
A constant flow of negative media reports and skepticism among analysts has damaged Facebook stock. This stems from privacy issues, data security breaches and misinformation on its platform. Early this month Facebook said it deleted more than 800 U.S. publishers and accounts for delivering a flood of political messages that consistently violated spam policies.
Facebook Stock Plunge
Shares of Facebook plunged 19% on July 26 after the company reported second-quarter earnings that missed estimates on revenue. It also lowered revenue guidance for the third and fourth quarters. The drop took a chunk of more than $100 billion off Facebook's market value that day.
The stock plummeted below its 50-day and 200-day moving averages in intense trading. Facebook stock is down 33% from its record high of 218.82 on July 25.
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The post Facebook Stock Fluctuates As Third-Quarter Earnings Miss On Revenue appeared first on Investor's Business Daily.
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