Facebook stock falls after showing 51% rise in expenses

Earnings

Facebook Chairman and CEO Mark Zuckerberg arrives to testify before the House Financial Services Committee on “An Examination of Facebook and Its Impact on the Financial Services and Housing Sectors” in the Rayburn House Office Building in Washington, DC on October 23, 2019.

Mandel Ngan | AFP | Getty Images

Facebook is set to report its fourth-quarter earnings after the bell on Wednesday.

Here’s what analysts expect:

  • Estimated earnings per share (EPS): $2.53, per Refinitv
  • Estimated revenue: $20.89 billion, per Refinitiv
  • Estimated daily active users (DAUs): 1.65 billion, per FactSet
  • Estimated monthly active users (MAUs): 2.5 billion, per FactSet
  • Estimated average revenue per user (ARPU): $8.38, per FactSet

Over the past year, Facebook has struggled with numerous regulatory challenges.

The company announced the libra digital currency in June, which has since struggled with pushback from lawmakers and regulators around the globe, losing key partners in the process.

In July, the company agreed to pay the Federal Trade Commission a record-setting $5 billion penalty as a result of the agency’s probe following the Cambridge Analytica scandal. The company is also facing four separate antitrust-focused investigations that were launched over the past year.

Despite all the controversies surrounding Facebook, there are signs the business is still doing well. New data from Facebook show that users continue to click on more ads, especially in the U.S. and U.K.

Facebook shares are up more than 50% year since last January.

This story is developing.

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