Facebook has experienced a 29% rise in its stocks after the firm posted the quarter three earnings that surpassed analysts’ expectations. But will the social media giant continue to shine amidst regulatory actions?
2019 brought Facebook under excessive regulations inflicted on its data privacy efforts and its cryptocurrency project. The introduction of Libra obtained the sole attention of regulators and turned the year into a challenging zone. To attain insight into Facebook’s gainfulness, Digital Journal came in a conversation with senior analyst Haris Anwar from Investing.com.
Anwar states that the fear of regulatory actions has kept the platform’s shares under pressure over the last three months and is an external factor for Facebook’s torpid performance so far. However, the latest report depicts another flat quarter, which was enough to power up the stock, which this summer was trifling with a different record high.
The analyst looked upon future predictions, mentioning the significant factors that might impact the network. He said, “Going forward, there’s no guarantee the challenges for the world’s largest social media platform will disappear. In the latest conference call with analysts in July, the company’s chief financial officer warned that Facebook’s slowdown in revenue growth could extend beyond this year.”
He further highlights the fact that there is no other platform as global and widely accepted as Facebook. Thus, it will continue to operate successfully, even through harsh environments. Anwar concluded the discussion by stating, “It’s naive to think that this power is diminishing, and despite the ups and downs, I remain bullish on Facebook’s stock.”