Trump said he doesn't see a recession after the bond market spooked investors and the Dow suffered its worst day of the year last week.Marketsread more
The U.K. prime minister prepares to meet his German and French counterparts this week.Europe Politicsread more
Amazon is raising seller fees for thousands of small and medium-sized businesses in France because of a new digital tax passed by the French government.Technologyread more
U.S. stock index futures point to a higher open on Monday morning as the White House sought to calm investors over growing concerns about the U.S. economy.US Marketsread more
Ahead of the deadline, U.S. President Donald Trump told reporters that Huawei was a national security threat.Technologyread more
Bianco Research's James Bianco suggests Wall Street is desperately looking for a signal that a 50 basis point cut is coming next month.Trading Nationread more
Baidu is gearing up to release its second-quarter earnings on Monday with the market expecting a sharp decline in profit.Technologyread more
Americans now say they approve of free trade by 64%-27%, a margin of better than two to one. That's up from 57%-37% early in Trump's presidency, and 51%-41% near the end of...Politicsread more
Stocks in Asia rose on Monday as U.S. Treasury yields bounced higher after plunging last week.Asia Marketsread more
The problem with tanking equities lies elsewhere, writes Michael Ivanovitch, because traders see no end to America's unfolding trade disputes with Europe and China.World Economyread more
Beijing wants to use reforms to support a slowing economy.China Marketsread more
Facebook missed projections on revenue and global daily active users this quarter after struggling with data leaks and fake news scandals. Shares crashed after hours on the miss and warnings from Facebook of a revenue slowdown later this year.
The company posted its second-quarter earnings after the bell on Wednesday. Shares were down as much as 24 percent after the report on Wednesday, and more than 17 percent in premarket trading Thursday. At the current after hours prices and given its market cap at the close Wednesday, Facebook is poised to lose more than $123 billion in market value.
On a call with analysts, Facebook advised it expected its revenue growth rates to be lower than the year prior, especially in the second half of this year. Sequentially in the third quarter and fourth quarter, it expected the decline to be as much as high single digit percentages. Some reasons included Facebook investing in Stories, which has lower levels of monetization, as well as improving privacy features as a result of GDPR and other user demands. It also is bracing for currency fluctuations as the dollar gets weaker.
"We continue to focus our product impact on putting privacy first, and that's going to have some impact on revenue growth," said Facebook chief financial officer David Wehner on the earnings call.
Facebook said 2.5 billion people were using any of its family of apps each month, including Instagram and WhatsApp. Though Facebook-specific global DAU rates were up 11 percent year over year -- with growth led through users in India, Indonesia and the Philippines -- it was less than Wall Street was projecting. European DAUs were down from 282 million last quarter, potentially related to the effect of the enactment of the General Data Protection Regulation (GDPR) in the European Union. The set of regulations gives users more control over their online data.
"GDPR has not had a significant (ad) revenue impact, but we also recognize it wasn't fully rolled out this quarter," said Facebook chief operating officer Sheryl Sandberg on a call with analysts, adding the company recognizes there could be more risk for decreased numbers in the Europe in the future.
North American DAUs remained flat despite the fallout from the Cambridge Analytica data leak scandal and fake news issues. However, average revenue per user in the region rose despite the lack of growth. It reached $25.91 per user, up from $23.59 during the first quarter.
Facebook also surprisingly missed on advertising revenue projections, reached $13.04 billion compared with the StreetAccount and FactSet estimate of $13.16 billion.
However, media buyers believe the company will bounce back.
“A surprisingly mixed set of results, " said Marco Rimini, chief development officer at Mindshare. "We believe this is a short term effect of GDPR and some short term negative effects of PR issues. In the mid-term advertisers still believe in Facebook, as do its users."