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Facebook hits an all-time high ahead of earnings



facebook ceo cofounder mark zuckerberg
co-founder, Chairman and CEO Mark Zuckerberg testifies before the
House Energy and Commerce Committee.

Chip Somodevilla/Getty

rose as much as 0.7% in trading Wednesday to hit a new record
high of $216.30 a share as the social media giant prepares to
report its second-quarter earnings after the closing bell.

Analysts polled by Bloomberg expect the social-media giant to
report adjusted earnings of $2.01 a share on revenue of $13.33
billion, both above last quarter as well as the same period of

Shares have largely shrugged off the spring slump that followed
data-privacy scandal surrounding the firm Cambridge
. They are now up 18% since the beginning of the

Despite the criticism from advertisers and users, ad revenue and
engagement should be healthy, according to Daniel Ives, a
technology analyst at GBH Insights.

“While this has been the darkest chapter in Facebook’s 14-year
history, based on our recent user and advertising checks we
believe the company has seen minimal speed bumps in 2Q around
advertising strength and user engagement trends which is a
healthy sign looking ahead in our opinion for Facebook (and its
investors),” Ives said in a note to clients this week. 

“After a key 1Q earnings test in April which Facebook performed
well while passing the regulatory hearings in both US and Europe
with flying colors, now the focus for the Street is around 2Q as
another “pivotal barometer” this week to gauge any fundamental
damage (advertising, MAU growth) post the Cambridge situation and
News Feed overhaul moves.”

Ives has a $225 price target for Facebook.

Now read:

Facebook stock price earnings


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