Facebook beat earnings Zuckerberg wants to show Wall Street who’s boss

It’s a good time to buy Facebook equity because it is cheap and the embattled giant is about to beat expectations when it reports first quarter earnings on April 25, veteran strategist David Seaburg told CNBC news this Thursday.

“It’s inexpensive for the earnings growth trajectory they have. We did a study today that showed engagement hasn’t pulled back,” Cowen’s head of equity sales trading told Power Lunch. “The engagement factor is staying still. Ad buyers are locked in. I think the earnings are going to be good. I think it’s a catalyst for the stock to go higher.”

Seaburg added that strong earnings will be especially important to CEO Mark Zuckerberg, who spent Tuesday and Wednesday testifying on the company’s recent data scandal on Capitol Hill.

See also: How to Check if your Facebook information was shared with Cambridge Analytica

“Zuckerberg — he’s an arrogant guy. Let’s just call it what it is,” Seaburg said. “In my opinion, I think he wants to show the street something. I think he wants to put up a quarter that’s incredibly incredibly polished and I think it’s going to happen.”

Facebook co-founder, Chairman and CEO Mark Zuckerberg smiles at the conclusion of his testimony before the House Energy and Commerce Committee in the Rayburn House Office Building on Capitol Hill April 11, 2018 in Washington, DC.

Facebook shares, which closed at $163.87 on Thursday, have dropped more than 11 percent over the past month on news that a political research firm, Cambridge Analytica, was able to access the personal of millions of Facebook users for political marketing. Facebook is still up more than 17 percent over the past year, however.

Zuckerberg has been under intense scrutiny, testifying to Congressional lawmakers about Facebook’s privacy practices. He was grilled about Facebook’s fundamental model, the way it uses data and what kind of regulation may be appropriate.

Recommended: Time to delete Facebook? How to take a social media break

Seaburg acknowledged that his studies show Facebook engagement has trended downward quarter-over-quarter since the beginning of 2017.

“You have to look at it more year-over-year,” he said. “Take the cyclicality out of the equation. I will say to you the surveys we’ve done from an ad buyer perspective and the clients we’re talking to — they’re really waiting for this quarter’s earnings to come out.”

In the news: Second Cambridge Analytica CEO Steps Down Amid Facebook Data Scandal

Image Source: Getty Images

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