
Facebook Reports First Quarter 2019 Results - runesoerensen
https://investor.fb.com/investor-news/press-release-details/2019/Facebook-Reports-First-Quarter-2019-Results/default.aspx
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dweekly
Over 200 (+10%) in the after-hours!
[https://www.google.com/search?q=NASDAQ:FB](https://www.google.com/search?q=NASDAQ:FB)

While P/E ratio is back up to 24 (after December's low of 17) that's still way
more conservative than their 70-80 range a chunk after IPO:
[https://www.macrotrends.net/stocks/charts/FB/facebook/pe-
rat...](https://www.macrotrends.net/stocks/charts/FB/facebook/pe-ratio)

That says to me that the markets are pricing Facebook as a relatively well-
characterized business at this point and don't see the likely fines as
material to the business.

(Disclaimers: I own no shares or options of FB nor am I planning to acquire
any. I am a former employee.)

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rdlecler1
Apple had a P/E ratio of something like 12-13 and then went on to more than
double it’s stock price. Markets are not always very wise.

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arcticbull
P/E ratios aren’t absolutes, they vary from industry to industry. Hardware
companies have lower P/E ratios than software companies and Apple has
traditionally been regarded as a hardware company.

~~~
formercoder
Multiples like P/E are just a proxy for cash flows, discount rate, and growth.
That P/E tends to stratify on industries makes sense not just because of
growth, but also its sensitivity to capital structure. So asset heavy
companies with lots of leverage will have different P/E ratios even with the
same unlevered free cash flows.

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jtms
I am pretty surprised the price continues to rise with the never ending
torrent of bad news regarding how nefarious FB is when it comes to privacy and
exploiting their users. I guess this goes to show just how few people care at
all about their privacy... really makes me worry for the future.

~~~
jedberg
Hang out with teenagers, or even 20 somethings, for just a little while, and
you'll see that privacy means nothing to them. The youngest kids are a little
better, sticking to Snapchat over Facebook and Instagram (because the messages
are "temporary"). But for example, when a friend of mine got into college, she
posted on Facebook, "just got checked in!" along with a picture of her school
ID, her room key, and the form with the room number. I told her that someone
could easily get into her room with that one photo, but she didn't care.

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saagarjha
> privacy means nothing to them

This is a blanket statement. I’m not convinced the rate of people who don’t
care about their privacy varies significantly with age.

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cm2012
Growing ad revenue 30% YoY with users rising 8% YoY means FB is really
improving on monetizing its userbase.

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basetop
I'm sure FB improved its monetization and will continue to improve it as it
grows as a company. But they also benefit from an overall increase on online
ad spending - which is expected to grow 19% this year ).

[https://techcrunch.com/2019/02/20/emarketer-digital-ad-
forec...](https://techcrunch.com/2019/02/20/emarketer-digital-ad-forecast/)

Nearly 19% increase in online ad spending overall + FB's 8% growth + improved
monetization and you can see why FB ad rev increased 30%. Online ad spending
is expect increase by double digits for many years so FB, GOOG, etc are
sitting pretty as long as they can hold onto and grow their userbase.

Even if FB did nothing, their ad revenue would most likely increase by double
digits every year simply because the digital ad space is increasing by double
digits every year. Money is pouring into digital space and they have one of
the biggest buckets.

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MarkMc
Most Facebook revenue comes from US and Europe where user growth is basically
zero. The 8% user growth is driven by poorer countries like India and
Indonesia, so the contribution of user growth to revenue would be much less -
I'd say around 4%.

Also much of the increase in online ad spend comes _because_ of the improved
monetisation of online ads. If Facebook had just sat on their hands, I'd
estimate that their revenue would have grown 4% due to user growth, 3% due to
growth in average user income, and 5% due to increase in average screen time.
That's a 12% tailwind.

Facebook's actual revenue grew 26% so it's reasonable to say that around 14%
of that was due to Facebook improving their ability to match users with
advertisers.

(Disclaimer: I own FB shares)

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sytelus
* Daily active users (DAUs) – DAUs were 1.56 billion on average for March 2019, an increase of 8% year-over-year.

* Monthly active users (MAUs) – MAUs were 2.38 billion as of March 31, 2019, an increase of 8% year-over-year.

* Headcount – Headcount was 37,773 as of March 31, 2019, an increase of 36% year-over-year.

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cm2012
The headcount is mostly hiring manual moderators.

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polishTar
Moderation is probably done by contractors or vendors, not employees.

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mindfulplay
People keep harping on about 'delete Facebook': it doesn't matter because they
have laid cookies everywhere and have already built a profile. Newly born
people will at least have some connection through their other properties that
will help lay their Pixel tracker all over the web properties.

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romanovcode
Doesn't it not work if you use uBlock? I thought it blocks FB pixel so they
have no idea about your web doings.

