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BREAKING: Facebook Year on Year Q3 Profits UP ALMOST 300% (14)

11-02-2016 08:28 PM #1 cmdeal (Veteran Member)
BREAKING: Facebook Year on Year Q3 Profits UP ALMOST 300%

How the hell does a $30 billion/year run rate company TRIPLE its profits? Just amazing

Facebook Profit Jumps Sharply
Revenue and earnings smash Wall Street’s expectations

from http://www.wsj.com/articles/facebook...ply-1478117646



By DEEPA SEETHARAMAN
Nov. 2, 2016 4:14 p.m. ET

Facebook Inc. reported Wednesday that its third-quarter profit nearly tripled, marking another period of untrammeled growth driven by the social network’s mobile ad products.

Net income rose to $2.38 billion from $896 million a year earlier. Excluding certain expenses, Facebook reported earnings per share of $1.09, compared with 57 cents a year earlier. Analysts, on average, expected a per-share profit of 97 cents, according to Thomson Reuters data.

Revenue was $7.01 billion in the third quarter, up 56% from $4.5 billion a year earlier, topping expectations for $6.92 billion. The results mark the sixth straight quarter that Facebook has surpassed analyst expectations for both earnings and revenue.

Facebook and its rival Google, part of Alphabet Inc., account for the lion’s share of growth in digital advertising. Mobile accounts for nearly half of all the advertising purchased online in the first half of 2016, according to the Interactive Advertising Bureau, and mobile ads recorded the fastest growth of any category compared to the first six months of 2015.

Facebook brought its total monthly active users to 1.79 billion as of the end of the quarter, up 16% from a year earlier.

11-02-2016 08:48 PM #2 Mr Green (Administrator)

That's just insane...keep on banging my head for not buy stocks earlier on.

11-02-2016 09:12 PM #3 draper (Member)

Anyone here believes that Snapchat is going to end up being the biggest disappointment in all Silicon Valley? It's amazing to see how FB really outperforms all their competitors in the social media space, not even twitter that is already a consolidated brand can achieve profitability and of course, everyone here knows why, their advertising platform sucks.

11-02-2016 09:13 PM #4 Mr Green (Administrator)

Quote Originally Posted by draper View Post
Anyone here believes that Snapchat is going to end up being the biggest disappointment in all Silicon Valley.
I secretly hope so...I can't stand it. I don't get the craze.

11-02-2016 09:37 PM #5 maxzhongguotong (Member)

well.. P/E is still 60 which is pretty high though

yes , should short both twitter and snapchat , my girlfriend told me today she sees nobody using snapchat anymore

11-02-2016 09:48 PM #6 mehdi (Member)

Quote Originally Posted by Mr Green View Post
That's just insane...keep on banging my head for not buy stocks earlier on.
Tell me about it

My best friend bought $200k when they IPOd .. bitter sweet to witness his euphoria everytime they report their profits haha


Mehdi

11-02-2016 09:51 PM #7 lanikai87 (Member)

Facebook executes on every level. I think even now it's still a wise investment. Think long term, 10 years from now. It could be a $1,000 stock.

11-03-2016 01:19 AM #8 draper (Member)

FB stocks are with a $9 discount right now in case someone wants to get in

Ps: Stock tanked because the CFO told in the conference call that they will get into heavy costs next year building new datacenters and hiring advanced staff, also they expect ad load growth to decrease.

11-03-2016 08:14 AM #9 h0mp (Member)

I was expecting to see this report with the CPMs I've been paying.

11-03-2016 12:50 PM #10 cmdeal (Veteran Member)

Quote Originally Posted by h0mp View Post
I was expecting to see this report with the CPMs I've been paying.
Lol yeah. Problem is I feel like I have no choice. I guess that is why Zuck is a gazillionaire and I am not.

11-07-2016 09:49 PM #11 mihalis09 (Member)

Quote Originally Posted by lanikai87 View Post
Facebook executes on every level. I think even now it's still a wise investment. Think long term, 10 years from now. It could be a $1,000 stock.
Yet it does not even come close to seem smart to invest on a P/E 60 stock. It's just not wise

11-08-2016 06:20 AM #12 cmdeal (Veteran Member)

Quote Originally Posted by mihalis09 View Post
Yet it does not even come close to seem smart to invest on a P/E 60 stock. It's just not wise
Whether Facebook is good investment or not right now, I have no idea, and even Zuckerberg will not know.

But basing an investment decision solely on a metric like P/E is also probably foolish ....

11-08-2016 07:59 AM #13 mihalis09 (Member)

Think about it like tracker rules. You see traffic come and have a rule say of P/E>20 that filters out that traffic. Wouldn't even consider it further. It's how solid investors think if you factor in the thousands of deals coming into their hands all the time. Deals gotta pass through their gatekeepers to even be considered. P/E is high on that list of things they first look at. Gotta pass thru first for the investment to even be considered further.

11-08-2016 09:08 AM #14 cmdeal (Veteran Member)

Quote Originally Posted by mihalis09 View Post
Think about it like tracker rules. You see traffic come and have a rule say of P/E>20 that filters out that traffic. Wouldn't even consider it further. It's how solid investors think if you factor in the thousands of deals coming into their hands all the time. Deals gotta pass through their gatekeepers to even be considered. P/E is high on that list of things they first look at. Gotta pass thru first for the investment to even be considered further.
Investing is about growth. P/E is a static ratio where no consideration is given for growth.

At no time in their entire history as a company has Google, Facebook, Amazon, Netflix, Tesla, etc EVER had a P/E of below 20.
If you were an active investment manager, and you did not even consider them because their P/E's were =>20, you would not have been doing your job.

Like most ratios, P/E can be useful.

For example, it is absolutely essential when valuing investments that resemble perpetuities and stable, low growth environments but positive interest rate environments.

But it is also very limited as an investment decision rule.

I personally don't know any truly successful investment manager who screens out investments based on P/E alone.

And I do know quite a few successful investment managers.

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