Will Facebook Overcome Recent Security Concerns?

Facebook (FB)

Information Technology – Internet Software & Services|July 25th AMC

Facebook is reporting their FQ2’18 earnings after the market closes on Wednesday, July 25th. Estimize consensus projects an EPS of $1.83, 8 cents higher than Wall Street and a 39% YoY growth. Estimize has been 88%  more accurate than Wall Street in predicting FB EPS.

We expect a revenue of $13.588B, a 46% growth (YoY) and $157M higher than Wall Street predicts. Estimize has been 84%  more accurate than Wall Street in predicting FB revenue.

Facebook is trying to overcome their data scandal from earlier this year. Despite the Cambridge Analytica scandal and a more recent 500,000 GBP fine by British authorities for not protecting user data, the company’s stock is nearing an all-time high. We expect 2.262B monthly active users, a 13% growth (YoY). Although Facebook user growth is slowing, the company hopes that Instagram users make up for that loss; Instagram recently launched IGTV, a long-form video service that will compete with Youtube.