by coach180
75 percent of their revenue comes from small/medium size businesses spending on advertising.
Almost all of their revenue comes from advertising
www.statista.com/statistics/277963/facebooks-quarterly-global-revenue-by-segment/
While everyone says companies are “getting a pass” on Q2 earnings the stock is still going to get absolutely destroyed. I have used Facebook Advertising and part of it’s draw is it’s simplicity. No contracts or subscription, just set runtime and amount you want to spend. Very easy to turn off. So when all these companies shut down(and continue to struggle) Facebook ads where the first to go.
So right now the stock has big headline risk given all the big names pulling ad spend(means nothing to bottom line) and what will be the biggest FB earnings miss off all time. This Titanic is going to have one hell of a correction.
Also side note: Google will also have a huge miss, Apple is in dangerous territory with China and iPhone delivery. So QQQ is going to also have a sizable correction.
Aug 21 $235P TQQQ AUG/Sept $89P SBH Dec $5P (nothing to do with this just some free money)
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.