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Facebook shoots up 10% after presenting earnings above expectations

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Facebook has passed with the confessional this Wednesday. Mark Zuckerberg's social network has reported revenues of $ 17.74 billion during the first quarter of 2020. Figures that seem to have been well received in the market. His actions Wall Street's after hours market is rising more than 10%, which records negotiations after hours.

The figure is 2% above the consensus estimates, which spoke of $ 17.42 billion. In addition, it supposes an increase of 18% compared to the same period of the previous year.

What has not been so positive is the data that refers to earnings per share (EPS). The company has declared $ 1.71 per share compared to the 1.75 of which the consensus spoke. Although this is a significantly higher figure than that declared last year. So it was $ 0.85

"Our job has always been to help people stay connected," said Mark Zuckerberg, founder and CEO of Facebook. "They trust our services more than ever, we are focused on keeping people safe, informed and connected."

Despite the fact that the income is higher than expected, in recent weeks, due to the coronavirus, they have experienced a significant reduction in advertising demandas well as a related decrease in the price of your ads.

“Advertising spending has slowed worldwide, and this has a direct impact on business performance. In particular, Facebook has a lot of exposure to small and medium-sized companies, which are the most likely to disconnect their marketing expenses right now, "explains Sophie Lund-Yates, analyst at Hargreaves Lansdown

If this situation extends over time from Facebook, they do not rule out that the results of the coming months will be affected. That is why they do not undertake to make a specific income guide for the second quarter or the full year 2020, but rather a snapshot of revenue performance in the second quarter so far.

300 MILLION DESTINED TO HELP RESTORE THE ECONOMY

Having the Covid-19 have the least impact possible on people around the world has been one of its main goals since the pandemic began. From the company they are working that all their users have access to accurate information.

In fact, they have pledged to earmark more than $ 300 million in investments to help restore the economy. This includes creating a subsidy program for $ 100 million to help small businesses and invest another 100 million to support the information industry.

These grants do not mean that Zuckerberg's businesses have not been hurt by the global crisis. "We face a period of unprecedented uncertainty in our business perspective"explains the CEO of the social network. The effectiveness of economic stimuli and currency fluctuations in relation to the US dollar are two of the aspects that can affect them the most.

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