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In the recent mishap over the stocks, the social media giant, Facebook was seen getting down with 8 percent of its stock in the market. This has happened after the company reported the fourth quarter earnings this Wednesday evening. The drop, therefore, has erased more than 50 billion USD from the company’s market cap. However, there seemed to be some amount of upliftment in the shares to a slight level but yet it went down to around 6 percent on the pace for the worst day of the stock since it was seen in Jun 2019 when it was seen falling down to 7.51%.

The decline, however, was seen once Facebook was seen reported around 51 percent in expenses when compared with its total in 2018. The expenses were largely linked to the elements of privacy and security improvements. That further was seen clashing with a drop in the operating margin of the company that would go down from 45% in 2018 to 34% in the year 2019. Furthermore, the increase in expenses, Facebook was seen warning of the ads headwings that are related to privacy and regulatory changes seen over the horizon that ended up bringing the slowdown in growth over the improvements taking place in the privacy of the US when compared to Apple and Google products like iOS and Android respectively that went on to face good ads.

As per one of the notes found from investors at Pivotal Research Group was seen slashing down the rating from buy to hold in perspective of the advertising concerns. The Pivotal group was seen reducing the cost target to $215 from $245. This further could slash down the US along with putting the greater war then we had expected along with the sounds that are seen persisting. The privacy related expenditure and the ads headwings are now expected to continue the entire 2020. Facebook head Mark was seen saying about the company’s earnings that privacy would remain as a focus thing this year. It is going to take some time in the coming decade as they went to build it over things like privacy and other elements. 

Looking at the financial reports, Facebook was seen delivering the beat over the top and that came down to the bottom lines with their earnings reports. Some of the key numbers of the company:

The Earnings (EPS): $2.56 vs. $2.53 per share that has been forecast by Refinitiv.

The Revenue of $21.08 billion vs. $20.89 billion forecasts was added by Refinitiv.

The Daily active users has come with 1.66 billion vs. 1.65 billion forecasts by the company called FactSet.

The Monthly active users seemed coming with 2.5 billion vs. 2.5 billion forecasts by FactSet.

While the average revenue per user (ARPU) was noted as $8.52 vs. $8.38 forecast by FactSet.