Five Important Facts from Facebook’s Financial Earnings


Facebook

1. More than one-quarter of the world’s population uses Facebook each month.

Facebook now has 1.94 billion active users who visit the site on a monthly basis. This is a hair over 25% of the world’s population, which is estimated to be at 7.5 billion. This means that one in four people use Facebook at least once a month.

2. Facebook made 49% more revenue compared to the first quarter of 2016.

Facebook made a quarterly revenue of $8 billion. This is up from $5.3 billion the previous year. The company gets their revenue almost entirely from ads, though they also make and sell certain hardware products (like the Oculus VR.)

3. Facebook’s net income is up 76% from Q1 2016.

With an increase in Facebook’s revenue comes an increase in their net income. The company made $3.064 billion in income for Q1 2017, compared to the $1.738 billion from Q1 in 2016. So, yeah, they’re growing pretty rapidly.

4. Facebook spent over $1 billion on R&D and hired more people.

Facebook spent $1.16 billion on research and development in their first financial quarter, or an eighth of their quarterly revenue. They also now have 18,770 people on staff, a 38% increase compared to the same quarter last year.

5. Despite all these impressive data points, Facebook’s stock is down.

$FB is currently down 2.72 percent as of this writing during after-hours trading. There are numerous reasons as to why this happened. It’s possible that traders decided to capitalize on the stock’s recent highs and sell in the moment. There’s also the fear that the company will max out the amount of ads they’re about to sell, something Facebook publicly warned about in the past. That decrease could also turn around into a slight increase by the morning, as investors realize hitting financial milestones shows that the company still has massive staying power. Until then, the stock is moving ever-so-slightly downward.

How do you invest in Facebook?

Since Facebook’s stock is slightly down but shows proof of growth in the future, now might be the time to invest in the company. First, do the necessary research before you even think of investing in the company. Next, you need to have a broker or brokerage. (We highly recommend Robinhood, as they have no fees or commissions involved in buying shares.) Once you’re set up with your brokerage of choice, simply search for the FB symbol and buy the amount of shares you want.