Investors liked what they heard from Facebook Inc. (FB) - Get Meta Platforms Inc. Class A Report following Tuesday's release of third-quarter earnings, sending the stock and its fellow FAANG brothers rising sharply on Wednesday, Oct. 31.
Shares of Facebook were up 3.7% after the social media company reported third-quarter profit of $5.14 billion, or $1.76 per share -- a 9% increase from a year ago -- on revenue of $13.73 billion.
Analysts were expecting the company to report earnings of $1.48 a share on revenue of $13.78 billion.
Those numbers also helped lead fellow FAANG stocks out of their recent malaise as the Nasdaq was able to climb out of correction territory Wednesday.
Betting against FAANG stocks by shorting them has been extremely lucrative for short-sellers in recent weeks. FAANG short-sellers have seen $5.52 billion in market-to-market profits since the start of October, according to data from S3 Partners, a 17.14% return on an average short position of $32.2 billion.
Over the past four weeks, the tech heavy Nasdaq has dropped 12%, thanks mostly to double-digit declines from FAANG stocks, including a 24% drop for Amazon and a 26% drop for Netflix.
However, the Nasdaq jumped 2.6%, or 185 points, on Wednesday after a dismal October that saw the tech-heavy index enter correction territory.