While some Facebook execs were in Washington, D.C. Wednesday, testifying about Russia-backed ads, CEO Mark Zuckerberg announced blow-out earnings. The company reported ad revenue of over $10 billion and 2.07 billion monthly active users. Daniel Ives, Chief Strategy Officer and Head of Technology Research at GBH Insights, discusses the social media platform's 2018 guidance.
Zuckerberg said 2018 will be a year of "investment." Ives believes this should be used to further expand its ad growth, AR, mobile platforms, video, consumer engagement, and Instagram/Messenger monetization into 2018 and beyond. However, Ives said the platform will need to invest billions in security, which concerns investors. Zuckerberg warns that the company's future profitability will be impacted because of it.
Plus, we can't forget Apple. The tech giant reports earnings after the bell Thursday. Ives says early demand for the iPhone X will continue throughout the year. He says the Street really wants to see guidance for 75-80 million units in the month of December. He believes this will be Apple's biggest super cycle.