Promotions Facebook (NASDAQ: FB) rose last month after the social media giant released a profit and loss statement at the end of the month. Shares also rallied in early April along with the broader market in response to a series of positive news.
According to S&P Global Market Intelligence, the stock rose 10% over the month. As you can see from the chart below, on April 29, after the release of the income statement, the stock rose sharply.
Facebook rallied earlier in the month on news of Biden’s infrastructure bill, higher-than-expected March jobs reports and accelerated vaccine introduction, before returning most of those profits in mid-month.
On April 29, the company’s shares jumped 7.3% in response to a strong income statement.
Strong ad demand boosted revenues 48% to $ 26.2 billion, well above analysts’ estimates of $ 23.7 billion, and profits surged as the company posted weak results in the quarter a year ago when the restrictions were first applied. … Operating income nearly doubled to $ 11.4 billion and earnings per share were $ 3.30, easily beating expectations at $ 2.37.
The company is benefiting from the digital ad boom, which has driven ad prices up 30%, and is seeing steady user growth thanks to the pandemic. In addition, CEO Mark Zuckerberg said the company’s Oculus AR / VR platform has hit a tipping point as revenue in the other category, which primarily consists of Oculus, jumped 146% to $ 732 million.
Facebook did not provide specific guidance, but called for a moderate acceleration in revenue growth in the second quarter compared to the first quarter, as the company peaked a year ago. Revenue growth is expected to slow in the second half of the year as comparisons become more difficult and it faces obstacles related to changes in Applead targeting policies, although the company said it won’t be as serious as previously thought.
The stock is now trading at a sliding price-earnings ratio of just 28, making tech stocks look significantly undervalued after the quarter they just introduced.
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