In other words, FB has done somewhat worse than the NASDAQ, and about the same as GOOG over the same time period.
Best not to take broad market movements and try to ascribe specific market expectations to individual companies.
Best not to take broad market movements and try to ascribe specific market expectations to individual companies.
16 March open to 26 March close, Facebook lost 13% of its value [1]. The same statistic for the S&P 500 is 3.4%. This time horizon makes more sense than yours because it matches the first revelations of Cambridge Analytica's use of Facebook's data [3].
[1] https://finance.yahoo.com/quote/FB/history?p=FB
[2] https://finance.yahoo.com/quote/%5EGSPC/history?p=%5EGSPC
[3] https://www.nytimes.com/2018/03/17/us/politics/cambridge-ana...
This feels counter-intuitive to me as these are the major players in online advertising. A facebook exodus would feel like a positive for google's primary revenue driver. Why is the inverse effect true?
Google Play revenue (apps + media purchase/rental)
Hardware (Pixel phone/Google home/Nest hardware)
YouTube video ad revenue (brand based ads rather than search)
Youtube TV, Youtube Red subscription revenue
Google Cloud (>$1BB/quarter)
Plus the other tech on the horizon, that if something pops here, it will be accretive to revs:
Waymo
Verily
DeepMind
Fiber (if it ever comes back in growth mode)
Google Ventures
Etc etc
(struggled with formatting on this despite many attempts.. grr HN)
"Alphabet generated $32.3 billion in revenue during the fourth quarter, up 24% from the same period last year. It was Alphabet’s highest-revenue quarter ever, beating out the prior quarter. About $27.2 billion of that revenue, or 85%, came from Google’s advertising business."
https://qz.com/1195777/googles-swelling-advertising-business...
I also found it interesting how much Google pays for "traffic acquisition" (like paying Mozilla for default search etc):
" In its most recently completed quarter, traffic-acquisitions costs were $6.5 billion, or 24% of Google’s advertising revenue, up 33% from the same period last year. Google’s strongest growth areas—mobile search and programmatic advertising—carry higher traffic-acquisition costs, Alphabet chief financial officer Ruth Porat said on the earnings call."
(this is of course how Facebook is competing with Google: they have a captive audience that they additionally know very well).
As far as I can tell ad revenue is growing faster than all of google's "hobby" projects... They're still an advertising company with a couple of tech projects in a shed in the garden.