July 26, 2018, Jeff Herman has the latest in social media statistics the day they are made public, and the way he sees it, not even the so-called smart money, found in hedge funds, didn’t predict any of it happening either.
Jeff Herman is a trial lawyer who supports victims of rape and any other form sexual abuse. He is the founder of Herman Law and is currently the Firm’s Managing Partner. Jeff Herman is dedicated to his work in helping victims find justice. In his firm, Jeff Herman has created an analytical unit that assists him to break down his cases to either facts or theory.
As of the July 26th, the Facebook news is out, but up for grabs; it could easily swing back in the other direction.
Most of the public has already heard about the recent quarterly results from Facebook with earnings that plummeted during after-hours trading. This decrease also included the less expensive followers, Twitter and Snap, that reported their revenues down to 3.5 and 3.4 percent respectively. The trend continued until Facebook’s equity settled at an 18 percent decrease, and of course, this was attributed to the information leak disclosed earlier in the year.
It has been common knowledge that much of the social media corporate protocols allow their companies to operate in margins of 40-50 percent, and Facebook is no different. Facebook showed its Q1’18 operating margin at 46 percent, and their last quarter reported an operating margin of 44 percent. In the near future, Facebook predicts lowering even that number down to the mid-30s, and it appears it will be necessary if stock quotes continue to drop.
The five top tech companies were recently valued at over $4 trillion, and they have majorly contributed to maintaining the earnings results and public images. The disastrous earnings that were reported from Facebook last month, along with the declining Netflix, have broken through the veil that the five tech companies upheld, and the truth is leaking out.
One concept attributes the rising cause of this to the costs of running a social media company, which also leads to startups expecting higher content costs. Startups are forced to try different approaches to achieve the growth that they previously had while no one favors the idea of maintaining slower growth patterns as an alternative.
To date, Facebook is still the leading entity, and since they have worked through most of the familiar issues, Facebook’s lessons are the one used by less-profitable social media companies to progress.
See also: http://www.fivehundo.com/jeff-herman/