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Facebook: Earnings Catapult FB Stock to All-Time Highs

By U.S. News & World Report

Social media giant Facebook (ticker: FB) crushed earnings, revenue and active user expectations on Wednesday, catapulting the stock as much as 7 percent higher as Facebook continued its already impressive winning streak and reached another all-time high.

Shares topped the $130 level for the first time in after-hours trading.

Going into the second-quarter earnings report, FB stock was up 30 percent in the last year and more than 17 percent in 2016, so shareholders will continue to enjoy big returns from the social media darling after another blowout quarter.

In sharp contrast to Twitter, which grew monthly active users (MAUs) by just 3 percent to 313 million, Facebook grew MAUs by 15 percent to 1.71 billion last quarter. That’s roughly 23 percent of the world’s population.

[See: The 10 Best Ways to Buy Tech Stocks.]

Facebook adjusted earnings per share came in at 97 cents, up 94 percent from the same quarter last year. Revenue was up 59 percent to $6.44 billion. Mobile advertising revenue made up approximately 84 percent of overall revenue last quarter, up from 76 percent in the year-ago period.

Analysts were expecting Facebook to report EPS of 82 cents on revenue of $6.02 billion.

“This is a $350 billion company that continues to be able to grow at rates similar to much smaller more nimble technology companies,” says Michael Palumbo, author of “Calculated Risk” and the founder of Third Millennium Trading. “At some point Facebook will reach a ceiling to growth that all large companies hit, but that ceiling is nowhere in sight.”

Facebook has become one of the hottest names in the market in recent years as it gains ground on Alphabet (GOOG, GOOGL) as the go-to platform for mobile and digital advertising.

Facebook is the latest technology heavyweight to report earnings this week, following Apple (AAPL) and Twitter (TWTR), which both reported Tuesday. While Apple’s earnings beat expectations and sent the stock soaring above $100 per share, Facebook rival Twitter deeply disappointed.

“Unlike Twitter, which as we saw yesterday is struggling across the board, Facebook is doing a nice job of maintaining its momentum, launching new products that connect with both users and advertisers, and they’re monetizing them nicely,” says James Gellert, CEO of Rapid Ratings, a financial health ratings firm.

Video is central to strategy. Video has been a major point of emphasis for Facebook over the last year, as it attempts to woo traditional TV advertisers to allocate larger chunks of their budget to web video. Alphabet, which owns YouTube, is Facebook’s most formidable rival here, although Twitter is also gunning for those dollars and has struck streaming deals with the four major U.S. sports leagues.

[See: 11 Stocks That Donald Trump Loves.]

CEO Mark Zuckerberg made a point to highlight his company’s focus on video in the news release. “We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services,” he said. Facebook Live has been an important part of that effort as the company strives to bring compelling, original, and timely content to its platform in order to keep users coming back.

Facebook Messenger, which finally hit 1 billion users, should also become more important to the company’s strategy going forward, as Zuckerberg has said seriously monetizing Facebook’s properties doesn’t become a serious priority until the billion-user mark.

That said, Instagram isn’t close to the billion-user mark — it hit 500 million users in June — but the company is starting to take steps to make that a cash cow as well.

The biggest mobile and video-based competitor that Facebook doesn’t own is Snapchat, which Facebook attempted to buy in 2013 for $3 billion. Evan Spiegel, the co-founder of Snapchat, turned that deal down, and has since been richly rewarded. Snapchat’s most recent funding round pegged its valuation around $18 billion.

[See: The Perfect 10 Shares.]

From the look of it, it seems FB stock will continue charging higher after its blowout Q2 earnings, and the company seems nearly unstoppable right now.

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Facebook: Earnings Catapult FB Stock to All-Time Highs originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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