Facebook investors got Winklevoss-ed (read: royally f*cked) on Wednesday with shares dropping nearly 7% after a not-quite-as-good-as-expected-but-still-pretty-ok earnings report.
The good, the bad, the ugly
First, the good: a record profit of $21.1B which represents a 25% hike from Q4 last year. So, what’s the bad? In the US and Canada daily active users grew by just 1M, sparking fears of slowing growth. Turns out there’s a finite amount of crazy aunts who catch up with old friends in the comment section of BuzzFeed videos.
And now for the ugly: full-year expenses rose 51% ($46.71B)… which took a toll on operating margin, because, you know, Finance 101.
Is there anything to celebrate in Silicon Valley?
Elon Musk is still getting his Russ Hannemann on. When he isn’t, presumably illegally, rolling around in the Cybertruck in LA, he’s making Tesla shorts look foolish.
Case in point: TSLA shares rose more than 13% after an earnings report that featured top ($7.38B versus $7.02B) and bottom ($2.14 vs. $1.72) line beats. And a record delivery of 112k EVs probably didn’t hurt.
What else does that crazy son of a b*tch have up his sleeve?
The Model Y, that’s what. Because did you think a guy like Elon wasn’t going to complete “S, 3, X, Y”?
In a first for the company, a vehicle will be released… wait for it… ahead of schedule. That’s right, the Model Y SUV will start shipping in March of 2020… vs. Fall of 2020. Oh, and the range on the “long-range” version of the Roadster’s little cousin will be 315 miles instead of 280. Investors likey.
The bottom line…
It’s all about being a grower (not a show-er) in the Valley. And that’s a big problem for Zuck and Co. FB has acknowledged that one of its biggest concerns is the limited amount of internet users on planet earth. This is what we call a good problem to have.
Facebook, which boasts 2.89B monthly active users across all properties (read: the ‘Book, the ‘Gram, WhatsApp etc.) is quickly approaching the upper limit of internet users on earth. *Brain explodes*