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Bigger picture: Monthly active users of 2.9B rose 7.4% from the same period a year ago, as expected, while daily active users gained as forecast, +6.7% to 1.91B. As with Google (GOOG, GOOGL), Facebook warned that revenue growth would "decelerate significantly" as it "lapped periods of increasingly strong growth." Looking at a two-year comparison, it expects revenue growth to decelerate "modestly" compared to Q2's rate, but also expects ad targeting headwinds this year from "regulatory and platform changes, notably the recent iOS updates."
On a subsequent earnings call, CEO Mark Zuckerberg sounded a tone that was aimed toward the future, instead of looking back. Three key themes were discussed: creators, commerce and "building the next computing platform" (i.e. developed from AI, machine learning and VR). Facebook will invest $1B and keep creator tools free to use through 2023 and "work our way down the stack and build world class services at every layer of commerce." He also noted that video has become the primary way in which users interact with the platform, accounting for almost half of all time spent on Facebook (Reels is also the largest contributor to engagement growth on Instagram).
Into the Metaverse: "The metaverse is a virtual environment where you can be present with people in digital spaces. You can kind of think of this as an embodied Internet that you're inside of, rather than just looking at," according to Zuckerberg. "We believe this is going to be the successor of the mobile Internet... the defining quality of the metaverse is presence: creation, avatars, and digital objects. In addition to being the next generation of the Internet, the metaverse is also going to be the next chapter of us as a company." (21 comments)
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On a subsequent earnings call, CEO Mark Zuckerberg sounded a tone that was aimed toward the future, instead of looking back. Three key themes were discussed: creators, commerce and "building the next computing platform" (i.e. developed from AI, machine learning and VR). Facebook will invest $1B and keep creator tools free to use through 2023 and "work our way down the stack and build world class services at every layer of commerce." He also noted that video has become the primary way in which users interact with the platform, accounting for almost half of all time spent on Facebook (Reels is also the largest contributor to engagement growth on Instagram).
Into the Metaverse: "The metaverse is a virtual environment where you can be present with people in digital spaces. You can kind of think of this as an embodied Internet that you're inside of, rather than just looking at," according to Zuckerberg. "We believe this is going to be the successor of the mobile Internet... the defining quality of the metaverse is presence: creation, avatars, and digital objects. In addition to being the next generation of the Internet, the metaverse is also going to be the next chapter of us as a company." (21 comments)
Covid
Corporate America is making moves after fresh guidance from the CDC that recommended fully vaccinated people and kids should wear face coverings indoors - in areas with substantial and high levels of COVID-19 transmission. Twitter (NYSE:TWTR) is closing its offices in New York and San Francisco, just two weeks after the social media firm reopened in both cities. Facebook (NASDAQ:FB) is separately requiring its U.S. workers that return to the office to be vaccinated and Google (GOOG, GOOGL) has also jumped aboard that train.
Over in Hollywood: Netflix (NASDAQ:NFLX) has become the first major studio to introduce a blanket policy mandating vaccinations for the casts of all of its U.S. productions, according to Deadline. The requirement will also cover any crews that come into contact with them, which are known as "Zone A" workers. All staff in that category will be required to show proof of vaccination, with few policy exemptions like medical, religious and age reasons.
The news comes before President Biden is expected to announce that all civilian federal workers will need to be vaccinated against COVID-19 or face regular testing, social distancing, mask requirements and travel limits. The announcement will come at 4 p.m. this afternoon and cover 2.18M civilian employees (and possibly another 570K USPS workers). Meanwhile, Apple (NASDAQ:AAPL) is re-instituting a mask mandate at most of its U.S. retail stores, while Disney's (NYSE:DIS) domestic theme parks will require all parkgoers to wear masks indoors starting Friday.
Analyst commentary: The Delta variant is a tougher investment risk to peg than inflation, declared macro strategist Jim Bianco. "You could see a big rotation away from the reopening stocks or can take a playbook out of last year and say 'If we get rising variant and we get restrictions, more stimulus money is coming.' And, what have we learned about stimulus money? It goes right into the brokerage account. It goes right into the stock market." (6 comments)
Over in Hollywood: Netflix (NASDAQ:NFLX) has become the first major studio to introduce a blanket policy mandating vaccinations for the casts of all of its U.S. productions, according to Deadline. The requirement will also cover any crews that come into contact with them, which are known as "Zone A" workers. All staff in that category will be required to show proof of vaccination, with few policy exemptions like medical, religious and age reasons.
The news comes before President Biden is expected to announce that all civilian federal workers will need to be vaccinated against COVID-19 or face regular testing, social distancing, mask requirements and travel limits. The announcement will come at 4 p.m. this afternoon and cover 2.18M civilian employees (and possibly another 570K USPS workers). Meanwhile, Apple (NASDAQ:AAPL) is re-instituting a mask mandate at most of its U.S. retail stores, while Disney's (NYSE:DIS) domestic theme parks will require all parkgoers to wear masks indoors starting Friday.
Analyst commentary: The Delta variant is a tougher investment risk to peg than inflation, declared macro strategist Jim Bianco. "You could see a big rotation away from the reopening stocks or can take a playbook out of last year and say 'If we get rising variant and we get restrictions, more stimulus money is coming.' And, what have we learned about stimulus money? It goes right into the brokerage account. It goes right into the stock market." (6 comments)
Today's Markets
In Asia, Japan +0.7%. Hong Kong +3.2%. China +1.5%. India +0.4%.
In Europe, at midday, London +0.9%. Paris +0.7%. Frankfurt +0.4%.
Futures at 6:20, Dow +0.4%. S&P +0.3%. Nasdaq -0.1%. Crude +0.6% at $72.83. Gold +1.6% at $1827.70. Bitcoin +0.5% at $40362.
Ten-year Treasury Yield flat at 1.27%
In Europe, at midday, London +0.9%. Paris +0.7%. Frankfurt +0.4%.
Futures at 6:20, Dow +0.4%. S&P +0.3%. Nasdaq -0.1%. Crude +0.6% at $72.83. Gold +1.6% at $1827.70. Bitcoin +0.5% at $40362.
Ten-year Treasury Yield flat at 1.27%
Today's Economic Calendar
What else is happening...
China stocks close higher after some market reassurance.
Reservations for Ford's (NYSE:F) F-150 Lightning top 120,000.
EV battery stocks charge up as infrastructure bill advances.
Activision Blizzard (NASDAQ:ATVI) CEO pledges action after 'tone deaf' response.
Boeing (NYSE:BA) surges after showing first profit in nearly two years.
Qualcomm (NASDAQ:QCOM) 5G strength drives FQ3 beats, upside profit forecast.
PayPal (NASDAQ:PYPL) comes in light on revenue, soft Q3 outlook.
Pfizer (NYSE:PFE) 'very, very confident' booster will protect against Delta variant.
DiDi losses... Uber (NYSE:UBER) falls on report of Softbank selling one-third stake.
Reservations for Ford's (NYSE:F) F-150 Lightning top 120,000.
EV battery stocks charge up as infrastructure bill advances.
Activision Blizzard (NASDAQ:ATVI) CEO pledges action after 'tone deaf' response.
Boeing (NYSE:BA) surges after showing first profit in nearly two years.
Qualcomm (NASDAQ:QCOM) 5G strength drives FQ3 beats, upside profit forecast.
PayPal (NASDAQ:PYPL) comes in light on revenue, soft Q3 outlook.
Pfizer (NYSE:PFE) 'very, very confident' booster will protect against Delta variant.
DiDi losses... Uber (NYSE:UBER) falls on report of Softbank selling one-third stake.
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