Facebook is getting punished based on expectations. Investors were looking for indications of faster growth and better margins. Expenses skyrocketed 51% in 2019

Facebook 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.