Facebook (FB) Stock Jumps With Guidance Not As Bad as Feared

Facebook (NASDAQ: FB) stock gained 4% after-hours Monday after reporting mixed third-quarter results and providing guidance while being lower, was not as bad as some had feared following results last week from rival Snap.

The social media giant reported its Q3 results, with EPS coming in at $3.22, slightly above the consensus estimate of $3.19, but revenue of $29.01 billion missing the consensus estimate of $29.58 billion.

According to the company, its daily active users (DAUs) were 1.93 billion (up 6% year-over-year) on average for September 2021, while its monthly active users (MAUs) were 2.91 billion (up 6% year-over-year) as of September 30, 2021.

The company announced a new $50 billion share repurchase authorization, in addition to the $7.97 billion remaining on its prior share repurchase authorization as of September 30, 2021 (The company repurchased $14.37 billion of its Class A common stock in Q3).

Facebook provided its Q4 outlook, expecting revenue to range from $31.5 to $34 billion (vs. Street’s $34.89 billion), reflecting the significant uncertainty due to continued headwinds from Apple's iOS 14 changes, as well as macroeconomic and COVID-related factors.

According to the company, it will start reporting results of Facebook Reality Labs (FRL) as a separate segment from Q4. The company will provide revenue and operating profit for (1) Family of Apps, which include Facebook, Instagram, Messenger, WhatsApp and other services, and (2) Facebook Reality Labs, which include augmented and virtual reality related hardware, software and content. The company also mentioned that it estimates its investment in Facebook Reality Labs to reduce its total 2021 operating profit by approximately $10 billion.

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