In addition, a large number of big companies have announced to cut Facebook ads, backing a boycott campaign to put pressure on Facebook for regulating more of its content. It has also rescheduled its second-quarter earnings amid conflict regarding an antitrust hearing.
The slowest revenue growth is anticipated
The market analysts are expecting Facebook to report second-quarter revenue around $17.3bn, representing a growth of 2% from the past year period. This would also mark the slowest revenue growth in many years. Meanwhile, earnings expectations are high. The consensus estimate stands around $1.39 per share, indicating an increase of 52% from the earlier year period. The Facebook stock price is currently trading around $233, up 13% year to date. Meanwhile, some market analysts are seeing further upside for the social media giant despite concerns over business practices and slowing ads growth. Jefferies has provided a price target of $285 as the firm claims that Facebook has experienced higher than expected ads growth in the months of May and June. The firm sees robust online ads growth in the coming years for all key social media players. “Ads spending improvement is accelerating,” analyst Brent Thill notes, saying spending trends will improve through the second half and digital ads should boost market share.
