Facebook Warns of Business ‘Uncertainty’ But Wall Street Doesn’t Seem to Mind

Sean Burch

Facebook narrowly topped analyst projections when it reported $17.7 billion in Q1 revenue on Wednesday, but the social network sounded an alarm at the same time, saying its business faces “unprecedented uncertainty” due to COVID-19. CEO Mark Zuckerberg, speaking on the company’s earnings call Wednesday afternoon, said he is concerned the economic fallout could be even more severe if social distancing measures are lifted too early. “I worry that this could be worse than at least some people are predicting,” Zuckerberg said. And yet, Facebook’s stock price continued to dart higher on Thursday morning, increasing 5% to $204 per share. Over the last month, Facebook has completely rebounded from a mid-March swoon that dropped the company’s stock price below $150 per share. What’s behind the Wall Street boost? According to analysts on Thursday, the answer appears to be: Hey, it could’ve been a lot worse. Goldman Sachs, in a note to clients led by analyst Heather Bellini, said Facebook’s Q1 report was “better than feared.” Also Read: Facebook Hits 2.6 Billion Users, Narrowly Tops Q1 Revenue Estimates In the note, Goldman Sachs pointed to Facebook’s acknowledgment, in its letter to shareholders, that the company had seen a “significant reduction” in...

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