Why Facebook’s Margins Could Get Even Better
MarketFoolery
The Motley Fool
4.7 • 1.7K Ratings
🗓️ 2 November 2017
⏱️ 23 minutes
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Summary
Facebook’s 3rd-quarter results are astonishing, but shares fall anyway. Aaron Bush analyzes Mark Zuckerberg’s comments about increased spending on security and shares how Facebook’s margins could end up going even higher. Plus we dig into the latest results from Tesla and Blue Apron. To check out the latest from Motley Fool Wealth Management just go to http://Personal.Fool.com.
Transcript
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| 0:00.0 | It's Thursday, November 2nd. |
| 0:03.3 | Welcome to Market Foolery. |
| 0:04.4 | I'm Chris Hill joining me in studio today from rural breakers and |
| 0:07.2 | supernova. |
| 0:08.0 | Aaron Bush, back in the house. |
| 0:10.0 | Good to see you. |
| 0:10.9 | Thanks for having me. This is one of those days where we could go an hour if we needed to with companies like Alibaba and Auto Nation and Wayfair and Shake Shack among others reporting and we're not |
| 0:26.9 | actually going to talk about any of those so I'm sorry if I just got |
| 0:29.7 | anyone's hopes up we are however going to talk about Tesla's latest quarter and |
| 0:34.7 | Blue Apron's latest quarter. We got to start though with Facebook and I know |
| 0:42.3 | Apple reports after the market closes today, but I feel like with all the Russia stuff |
| 0:46.7 | that's been going on, this was the report that was going to be the most closely watched. |
| 0:53.0 | 10.3 billion dollars in revenue in Facebook's third quarter. |
| 0:58.0 | That is an increase of 47% year over year. |
| 1:01.0 | Their profits were higher than expected and yet it's almost as |
| 1:05.6 | though none of that matters because of what the CEO had to say. |
| 1:10.3 | Yeah I mean I think if we are just to look at the results alone, it's incredible. I mean, |
| 1:16.0 | revenue up about 50%, earnings up 77%. They have over 2 billion people using their platform monthly. That's insane and I mean to make that even seem more incredible |
| 1:29.8 | They're they're now turning out 50% operating margins. |
| 1:33.5 | So every dollar that they take in, |
| 1:35.2 | they keep 50 cents or so, maybe closer to 40 cents |
| 1:38.6 | like in cash flow. |
... |
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