Facebook appears to be battling a new scandal on an almost daily basis, but advertisers, users and investors are happy to turn a blind eye. This is what we expect Facebook’s results to show us after the closing bell today. User numbers are expected to have increased across all regions; revenue is expected to have jumped 25%. These would be numbers that are clearly withstanding the negative news.
Let’s not forget that Facebook posted record profits and revenue in 2018 despite growing concerns over its treatment of user data and its role in the spread of fake news.
Facebook has been spending on improving the customer experience ever since the Cambridge Analytica scandal. Therefore, costs are expected to have increased and we could see these cut into Facebook’s bottom line.
The share price is trading at approximately the same level after the profit warning in July, which saw it dive 17%. Facebook is up some 9% across the year to date – in line with the S&P. Shares are still some 16% from their record high.
Impressive results could see Facebook extend the current rally through resistance at $188.40 towards resistance at $192.40 and on to $203.
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