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Tesla Misses but Climbs, Facebook Beats but Falls

Mark Vickery

Following today's closing bell, we see Q1 earnings reports released by two of the most iconic 21st century stocks: premier electric car maker Tesla TSLA and social media leader Facebook FB. Both companies beat expectations on the top line, but it was murkier on the bottom, at least for Tesla. Yet that stock is climbing higher in the after-market, while Facebook is trending lower.

Tesla delivered a record number of vehicles in Q1 2017, over 25K, which was up 64% year over year. Gross margins for its autos in Q1 were greater than 27%, depending on the accounting. The company also sits on $4 billion in cash and plans to open another 100 facilities this year, globally. The Model 3, earlier indicated to begin production in the second half of this year, is reaffirmed for July 2017.

Yet the company is still posting big losses per share. The Zacks estimate was for -67 cents, whereas the company actually brought in a disappointing -$1.97 per share (accounting for stock-based compensation and other BNRI). Reminiscent of Amazon AMZN from years past, where wild bottom-line misses were shrugged off in favor of more production and volume, investors seem to remain on this ride with Tesla and CEO Elon Musk. For more, click here.

Facebook, on the other hand, posted a big beat over the Zacks consensus of 88 cents per share when it announced $1.04. Revenues of $8.03 billion easily topped the $7.85 billion expected, and rose 49% year over year. The social media pioneer and most dominant player, Facebook no longer breaks down their user numbers into mobile and non-mobile: altogether the company now sees 1.28 billion daily active users (DAU, slightly beating forecasts) and 1.94 billion monthly active users (MAU, also slightly above estimates).

This marks at least the 5th straight bottom-line beat for Facebook, with an average positive surprise in the neighborhood of 20% per quarter. Yet shares are trading down close to 2% in late trading for what looks like a "sell the news" scenario. Facebook shares have risen more than 30% since the start of 2017. For more, click here.

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