Investors are hoping that there will be no bad news about Facebook

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Investors are hoping that there will be no bad news about Facebook

October 29, 2018 - 09:33
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Facebook Inc. is approaching the end of most challenging year since it became public, Bloomberg reports. Earnings results will be published on Tuesday, however, investors are hoping that there will be no bad news.

Photo © Gerd Altmann, CC0 1.0

Facebook Inc. is approaching the end of most challenging year since it became public, Bloomberg reports. Earnings results will be published on Tuesday, however, investors are hoping that there will be no bad news.

It is expected that social media giant will show third quarter revenue at $13,8 billion, which is 34% higher than in previous year. Operating revenue will be $5,79 billion, Bloomberg analytics assume.

These optimistic results are expected despite of a whole row of negative news from the company, which included managers’ departure, problems with violation of privacy as well as with not meeting revenue targets in the second quarter.

In case of absence of negative news, analytics expect getting quite good results in fourth quarter.

Since reaching the record high level in July, the company’s shares lost more than $200 billion of market value, and are traded at the lowest level since May 2017 today.

It is expected that the number of monthly active users will grow from 2,23 billion to 2,28 billion. However, survey of RBC Capital Markets showed that share of advertisers who want to increase budget fell in September to 49% from 66% a year earlier. On the other hand, users of Instagram might increase advertising spending significantly.