Thursday’s trading session saw shares of social media giant Facebook fall as much as 8% after it reported fourth-quarter earnings that showed a 51% rise in expenses. Moving forward, investors should take note of a few ETFs with the heaviest exposure to Facebook.
Facebook’s fourth-quarter numbers as reported by CNBC:
- Earnings (EPS): $2.56 vs. $2.53 per share forecast by Refinitiv.
- Revenue: $21.08 billion vs. $20.89 billion forecast by Refinitiv.
- Daily active users (DAUs): 1.66 billion vs. 1.65 billion forecast by FactSet.
- Monthly active users (DAUs): 2.5 billion vs. 2.5 billion forecast by FactSet.
- Average revenue per user (ARPU): $8.52 vs. $8.38 forecast by FactSet.
The report also noted that “Facebook’s full-year 2019 costs and expenses came in at $46.71 billion, up 51% compared to its total in 2018. That coincides with a drop in the company’s operating margin, which fell from 45% in 2018 to 34% in 2019.”
“We had a good quarter and a strong end to the year as our community and business continue to grow,” Facebook CEO Mark Zuckerberg said in a statement. “We remain focused on building services that help people stay connected to those they care about.”
Here are three ETFs to watch with heavy exposure to Facebook as of Jan. 30:
- Communication Services Select Sector SPDR Fund (XLC)–19.86%: seeks to correspond generally to the price and yield performance of publicly traded equity securities of companies in the Communication Services Select Sector Index. The index includes companies that have been identified as Communication Services companies by the GICS®, including securities of companies from the following industries: diversified telecommunication services; wireless telecommunication services; media; entertainment; and interactive media & services.
- Fidelity MSCI Communication Services Index ETF (NYSEArca: FCOM)–15.38%: seeks to provide investment returns that correspond generally to the performance of the MSCI USA IMI Communication Services 25/50 Index. The index represents the performance of the communication services sector in the U.S. equity market. It may or may not hold all of the securities in the MSCI USA IMI Communication Services 25/50 Index.
- Vanguard Communication Services Index Fund ETF Shares (VOX)–15.17%: employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index (IMI)/Communication Services 25/50. The index itself is made up of stocks of large, mid-size, and small U.S. companies within the communication services sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all, or substantially all, of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index.
For more market trends, visit ETF Trends.