Facebook and Tesla report quarterly earnings
Facebook (FB) just confirmed that it's expecting an unprecedented fine from the Federal Trade Commission that could total as much as $5 billion. So naturally investors reacted by the sending the stock up as much as 5% in after hours trading.
The stock move may be a sign investors feel relief that Facebook is close to putting the FTC investigation behind it — and that the settlement isn't even worse.
Popular payments app Venmo has more than 40 million users, its parent company PayPal (PYPL) said on Wednesday.
This is the first time the company has disclosed how many people use the app, which is especially popular with millennials, who use it to send money to friends for things like groceries and rent.
During PayPal's first quarter, Venmo processed $21 billion in total payment volume, which represented growth of 73%. PayPal acquired Venmo in 2013.
Tesla (TSLA) doesn't exactly do "early," but this is a little nuts.
The market has been closed for 50 minutes, and investors (and reporters, ahem) are still eagerly pressing F5 on Tesla's website.
Wall Street has been bracing for what one analyst called “apocalyptic” results. Analysts surveyed by Refinitiv predicted that Tesla would be about $301 million in the red for the quarter.
The wait isn't helping ease fears.
Facebook's revenue for the first three months of 2019 topped $15 billion, a 26% increase from the year prior, despite an endless list of scandals. But the company's profit took a hit as it set aside $3 billion for an ongoing FTC investigation into its data privacy practices.
Facebook reported a profit of $2.4 billion for the quarter, down 51% from the year prior. That marks the company's first year-over-year profit decline since 2015.
Facebook (FB) estimates it will need $3 billion to $5 billion to cover an expected fine from the Federal Trade Commission, the company said in its first quarter earnings report on Wednesday. The company previously confirmed it has been in talks with the FTC, following a report that the agency may levy a record fine against the company for violating an 2011 data privacy agreement.
In its statement accompanying its earnings, Facebook said,
"The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome."
The company said that the funds it set aside for legal expenses related to the investigation cut into its profit for the first three months of 2019. Its earnings of $2.4 billion were down 51% from the same period a year ago.
Microsoft's (MSFT) bet on the cloud continues to pay off.
On Wednesday, the company said sales for its most recent quarter rose 14% to $30.6 billion, which was above Wall Street's estimates. The increase in revenue was helped by the company's commercial cloud business, which jumped 41% to $9.6 billion from last year.
Earnings-per-share also beat analysts' expectations. The stock rose more than 2% in after-hours trading.
The company has heavily invested in cloud services in the last several years, shifting focus away from its legacy business, Windows.
Microsoft's efforts have placed the company near the top of the fast-growing cloud technology sector. Its key cloud-computing platform is Azure, which competes with Amazon Web Services (AWS).
Stocks ended Wednesday’s trading day lower, just one day after the S&P 500 and Nasdaq finished at a record high.
So much for more record breaking…Losses were led by companies in energy, as well as telecommunications services and basic materials.