A day after Facebook released its earnings report for its fourth quarter 2018, the company’s stock is skyrocketing.
Nevertheless, the company noted it doesn’t expect revenue to continue climbing in the first quarter of this year and is prepared for slowing growth of the Facebook app.
Facebook’s fourth quarter results beat analyst predictions, reporting $16.9 billion in revenue and a $2.38 per share profit last year.
This demonstrates the company’s ability to increase revenue—and bump up user numbers—despite a series of privacy scandals in the last year.
Even Facebook’s more cautious outlook doesn’t appear to be deterring investors.
By Thursday morning, Facebook shares rose more than 13%, hitting $168 a share before the bell and peaking at $171 before dropping slightly to $169. And at least 17 analysts raised their price targets on the stock, reports Reuters.
But not everyone agrees the worst is behind Facebook. One analyst told Bloomberg that risks may lie ahead when European regulators conclude their investigations into Facebook’s privacy records. “Unfortunately Wall Street can be very short-sighted,” he said.