Bloomberg TV's Johnson Breaks Down Facebook's (FB) 'Killer' Earnings

User growth is one of the areas in which Facebook (FB) outpaced competitors in its 2016 Q2, Bloomberg's Cory Johnson said on Bloomberg TV today.
By Lindsay Rittenhouse ,

NEW YORK (TheStreet) -- BloombergNews' Cory Johnson broke down Facebook's (FB) - Get Report "killer" 2016 second quarter earnings on "Bloomberg Go" Thursday.

"Forget the estimates and what the analysts got wrong again, what we see from this company is terrific growth in the top line, strong growth in terms of users," Johnson said.

Facebook has more than one billion users, compared to Twitter (TWTR) which is "struggling to gain more than 300 million users," he commented.

An area worth noting is "the changing nature of what Facebook is and who the users are," according to Johnson.

"When they went public they had no mobile users and virtually no mobile revenues and we're now looking at a business where most of the users are using mobile and most of the users are on it every single day," he explained.

After yesterday's closing bell, Facebook reported second quarter earnings of 97 cents per share on revenue of $6.44 billion, blowing out analysts' estimates of 82 cents a share on $6.02 billion in revenue.

Shares of Facebook are climbing by 2.87% to $126.88 late this morning.

(Facebook is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with afree trial.)

Separately, TheStreet Ratings rated Facebook as a "buy" with a score of B+.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: FB

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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