Latest Articles

    Featured Articles

    Filter By Topic
    Baxia Markets
    By
    October 26, 2021

    Facebook expected to be hurt on Earnings Report

    technical analysis top header -01

    Ahead of Facebook financial results on Monday, the social media giant is expected to be hurt more than others in big tech by Apple Inc's iPhone privacy changes, investors fear, after Snap Inc missed revenue targets last week.

    The Apple privacy updates, which began rolling out in April and prevent advertisers from tracking iPhone users without their consent, has had investors in digital ad companies on edge for fear that reduced access to data would upend the nearly $100 billion mobile ad market.

    Snap confirmed fears on Thursday when it reported the Apple changes hurt its ability to measure whether its ads led to website visits or sales, and a measurement tool provided by Apple did not perform as well as expected.

    Snap's shares fell 25% and dragged down shares of Facebook, Twitter and Alphabet Inc, which all earn revenue by selling digital ads.

     

    Facebook Oct 25th 2021

    There can be "no more denying" the ramifications of Apple's privacy push, Ygal Arounian, managing director of internet equity research at Wedbush Securities, said in a research note after Snap's results.

    Ad revenue of Facebook, the second-largest digital ad platform in the world after Alphabet Inc's Google, is most likely to be hit compared with the company's tech peers, Evercore ISI analysts said in a research note.

    Analysts are targeting $29.5 billion in revenue for the third quarter, a 37% increase from the year-ago period, according to IBES data from Refinitiv. Shares of Facebook have risen 19% year-to-date.

    Last month, Facebook warned that the Apple changes caused it to under-report the results of its ads on iOS devices and said the changes had made it more expensive and difficult for brands to advertise on Facebook. read more

    The social media network has been one of the fiercest critics of Apple's updates, arguing they would hurt small businesses that rely on personalized advertising to increase sales.

    Google is also shielded from the iPhone privacy changes because much of its usage comes from desktops, and promoted results placed on Google searches are not dependent on iPhone data, Arounian said. Alphabet will report third-quarter results on Tuesday.

     

    We love to hear new ideas from traders and want to know what you think! 

     

    If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.

     

    Submit Your Feedback  

     

    Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 

     

    Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 

     

    Subscribe by Email