In about an hour’s time, Facebook Inc FB 1.08% plunged more than 4 percent on a strong day for the NASDAQ, following surprising commentary from AdParlor.
The Fly said AdParlor, the self-described “largest social and video advertising platform on the planet,” held a conference call today with CLSA and revealed some surprisingly weak Q1 Facebook ad spend.
AdParlor told CLSA its ad spend on Facebook was down 18 percent quarter-over-quarter. The market appears to believe that AdParlor’s ad numbers will correlate with Facebook’s Q1 earnings, which are expected to be released on April 27.
Following this news, Facebook’s stock dropped from above $112 to as low as $107.52 within about an hour’s time, although the stock has since bounced back. The stock traded recently at $108.90, down about 1.5 percent on the day.
Some are downplaying the importance of the numbers on Twitter. “i’m hearing the CLSA adparlor number DOESN’T include Instagram, which accounts for the massive delta btw -18% and -9%” @thenotablecalls tweeted.
Former facebook employee AJ Peebles also downplayed the numbers in a series of tweets.
“$FB is ALWAYS down QoQ when going from Q4-Q1. That is how digital advertising works. Seasonal. Q4-Q1 never pos… Q1 2015 saw…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
