Facebook just delivered mixed 2Q18 (June) results with top-line results coming up a bit shy of Street estimates on lighter advertising revenues while EPS came in ahead of expectations. Advertising revenue of $13.04 billion came in light of the Street’s $13.16 billion which we would characterize as a respectable quarter although the bulls will be disappointed by these results with the Street hoping for a clean beat. To this point, MAU of 2.23 billion was generally in line with the Street’s 2.25 billion estimate and was up a hair from 2.20 billion in the prior quarter. DAU of 1.47 billion also came up a bit shy of the Street’s 1.49 billion estimate and was up from 1.45 billion in the prior quarter. Both MAU/DAU showed growth but geographically have pockets of softness which remain challenges on the core platform. Facebook delivered total revenues of $13.23 billion vs. the Street at $13.34 billion while EPS of $1.74 came in ahead of the $1.71 Street estimate. While the knee jerk reaction will be negative on these mixed results especially given the meteoric rise in shares from the March lows, we ultimately believe the advertising revenues and underlying MAU/DAU metrics were “good enough” and show the worries of a massive fundamental and user deterioration at Facebook post Cambridge was more bark than bite at this point. This is a clear inflection point for Zuckerberg & Co. as the company’s advertising fortress and MAU metrics still look “well intact” despite the massive potential headwinds caused by Cambridge and the overall privacy worries (GDPR) in Europe although challenges remain. The Street has clearly viewed Cambridge as a “blip on the radar” although some soft spots in the advertising and overall user metrics will fuel the debate about further bumps in the road for Zuckerberg & Co. going forward and will be a key topic on the conference call. We also believe “considerable strength” from the Instagram side of the house (e.g. strong advertising and user growth) has neutralized any soft spots on the core Facebook platform in our opinion. In a nutshell, so far the fundamental damage to the Facebook platform has been “very contained” in our opinion and is generally better than feared from the white knuckle period a few months ago. That said, Facebook still has some wood to chop ahead both on the regulatory as well as user/advertiser front which must be successfully managed going forward. We maintain our Highly Attractive rating and $225 price target.