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As a TSLA ahareholder I'm enjoying this ride but am honestly equally puzzled. The numbers are not good. On a related note: FB has been profitable for years, is
by woodpanel 7y ago
As a TSLA ahareholder I'm enjoying this ride but am honestly equally puzzled. The numbers are not good. On a related note: FB has been profitable for years, is growing earnings each year by more than 20% and just beat wall street expectations, which wall street rewards with -6% on after-markets trading. Huh?!
- adventured 7y agoFacebook is getting punished based on expectations. Investors were looking for indications of faster growth and better margins. Expenses skyrocketed 51% in 2019, while sales growth is running closer to half that and looks permanently trapped under 30%, which is combining to crush their profit margin. The market never likes to see a company like Facebook lose margin so rapidly. Their margin fell from 45% to 34% for 2018 vs 2019. Investors are going to want to see that stop falling sooner rather than later. After the big FB rally, the report was mostly underwhelming. Entirely different expectations on the shoulders of FB vs Tesla at this juncture of their operational histories.