Facebook Tumbles Then Bounces As Algos React To "Fake" Earnings Estimate

Facebook first tumbled then jumped after reporting Q2 EPS of $1.32, which initially slammed the stock as much as 5% lower however, then jumped just as quickly when it emerged that Bloomberg had blasted a wrong EPS estimate, according to which the company had missed earnings of $1.38...

• FACEBOOK 2Q EPS $1.32, EST. $1.38

... only to immediately correct itself, and release the correct consensus expectations, which was $1.13.

• CORRECT: FACEBOOK 2Q EPS $1.32, EST. $1.13

Correction: Facebook Q2 revenue beats estimates https://t.co/Olpr5eLjlp pic.twitter.com/qmaAxWWhA2

— Bloomberg (@business) July 26, 2017

The algo reaction is shown below:

 

Among the other results:

• Q2 revenue of $9.32 billion, beating estimates of $9.20 billion
• 2Q daily active users 1.32 billion, estimate 1.32 billion
• 2Q monthly active users 2.01 billion, estimate 1.98 billion
• 2Q mobile ad revenue as percentage of ad revenue 87%
• 2Q advertising rev. $9.16 billion

And here are the key charts from Facebook's results:

Daily Average Users:

 

Monthly Average Users:

 

ARPU

 

Revenue by Geography:

Operating Margin: