What the sentiment indicator is Signaling: Facebook Inc. [FB]

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Facebook Inc. (FB)shares are up 8.5% since its first-quarter financial report for 2021. During the quarter, revenue grew 47.6% YoY to $ 26.2 billion, resulting in gross and operating margins of 80.5% and 43.5%, respectively. At the same time, EPS increased 193% y / y to $ 3.30. Management forecasts EPS growth of 29% by year’s end, to $ 13.11.

The expansion outside of the United States and Europe contributed to these strong results. Meanwhile, the size of ARPU (average revenue per user) also continued to increase across all regions. On any given day, 2.7 billion people use Facebook, and more than 200 businesses advertise using the social network.

As a result, VR (virtual reality) is set to become a significant contributor to its revenue growth and take up the majority of its R&D budget. High demand for Oculus Quest 2 persists, despite the end of the holiday season. As can be seen, by the maximum ratings on Amazon and other sites, users highly rate the product. Quest has built a new ecosystem of apps that continues to grow and generate income. The ROI size is 23.4%.

Risks are pretty numerous in this case. Apart from the obvious issues, such as the riots Facebook organized in different countries (for example, Urumqi in 2009), it is also necessary to consider the deteriorating attitudes towards Facebook in more loyal countries. Netflix released the documentary “Social Dilemma” not long ago that describes their addiction to the site and how they use it to spread conspiracy theories and manipulate people’s opinions.

The stock of Facebook Inc. (NASDAQ: FB) closed at $336.75 on Tuesday, decreasing -0.01% or $0.02. During the day, the shares fluctuated between $335.03 and $339.92. A total of 15.8 million shares were exchanged, which is lower than the company’s 50-day daily volume of 17.63 million and below the company’s year-to-date volume of 19.43 million. Stocks of the company have gained 44.84% over the past 12 months and have gained 0.92% in the past week. The stock has generated 23.10% over the past six months and a gain of 20.58% over the past three months. So far this year, the stock has returned 23.28%. Furthermore, the stock has a price-to-earnings ratio of 28.85.

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