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Facebook stock has been on a winning streak since the onset of the coronavirus pandemic.
Facebook Inc (NASDAQ: FB) stock traded around $360.80, 3.34% down, during today’s pre-market. Notably, FB stock closed Wednesday trading at $373.28, 1.49% up, in comparison to the day’s opening price. The notable Facebook stock reversal has been attributed to mixed Q2 earnings results released on Wednesday.
According to the social media giant, the second quarter came in profitable but the future is dim for its growth prospects. Notably, Facebook reported revenue of $29.08 billion versus $27.89 expected by analysts according to a survey conducted by Refinitiv.
During the second quarter, the social media giant recorded adjusted earnings per share of $3.61 against $3.03 expected by analysts according to Refinitiv. The daily active users (DAUs) came in at 1.91 billion. On the other hand, the monthly active users (MAUs) came in at 2.90 billion against 2.91 billion estimated by analysts according to StreetAccount.
Notably, Facebook reported that the average revenue per user during the second quarter came in at $10.12 versus $9.66 estimated by analysts according to a survey by StreetAccount.
Despite the eye-catching results, Facebook warned of impending future growth slowdowns. The company said that it “expects year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth.”
Facebook Stock and Company’s Results in Q2 2021
Facebook stock has been on a winning streak since the onset of the coronavirus pandemic. According to market analytics provided by MarketWatch, FB shares have added approximately 60%, 36%, and 21% in the past year, seven months, and three months respectively through Wednesday.
According to a poll conducted by MarketWatch, Facebook stock received an average of Buy rating from 51 ratings. An indication the company has more upside shifts to offer in the coming quarters.
With over $1 trillion in market capitalization, Facebook is well-positioned to take emerging opportunities with ease in the foreseeable future.
Notably, the company through CEO Mark Zuckerberg announced that it is working on a goal to develop the Metaverse product. According to Zuckerberg, Metaverse is “ a virtual environment where you can be present with people in digital spaces.”
“In the coming years, I expect people will transition from seeing us primarily as a social-media company to seeing us as a metaverse company,” Zuckerberg said. “Advertising will probably be a meaningful part of the metaverse, and Facebook’s goal won’t be to sell devices at a high premium,” he added.