What To Expect With Facebook $FB Earnings

Social Media Facebook $FB reports second-quarter earnings this week on Wednesday bookended by fellow FANG members Alphabet $GOOGL and Amazon $AMZN. $FB report is being watched eagerly with the stock up 43% this year.

Social Media Facebook $FB reports second-quarter earnings this week on Wednesday. Two other FANG members report this week. Internet monsters Alphabet $GOOGL, formerly known as Google start off on Monday, then Amazon $AMZN reports on Thursday. With the Nasdaq on a tear, and Friday seeing it’s first down day in 10 sessions, $FB second-quarter earnings report is being watched eagerly with the stock up 43% this year.

Consensus Estimates: Revenue of $9.17 billion, up 43% is expected and adjusted earnings up 46% to $1.14 earnings per share. 

What About Snapchat?

The seeming demise of $SNAP has also helped Facebook’s cause. By June Facebook’s Instagram Stories feature had grown to 250 million users which has further undermined its chief competitor, Snapchat $SNAP. This was up from 200 million in mid-April. Snap ended Q117 with 166 million users which was up 36% from the year-ago quarter.

Stories was added in August 2016, is a feature inside Instagram. $FB has in this time copied the most popular features of Snapchat. Instagram has over 700 million monthly users, doubling in just two years.

How pervasive are these internet monsters  in our lives?  A report from Research firm Comscore ranking online hits on mobile devices and computers gives us an idea. The growth of Facebook is a cultural phenomenon, last month $FB reached 2 billion monthly active users, doubling its base in just 4 1/2 years. The Q117 earnings number was 1.94 billion monthly active users.

Unique visitors in June via Comscore

  1. Google 241 million
  2. Facebook 204 million
  3. Yahoo! 186 million
  4. Microsoft 183 million 
  5. Amazon 180 million 

Online advertising Industry Revenue Share via emarketer 

Of a forecast $83 billion revenue in 2017 the market share i expected as 40% Google and 21% Facebook.

What Analysts Think

Wells Fargo analyst Peter Stabler

– Maintains an Outperform rating on Facebook.

“Within FB, our conversations with advertisers suggest somewhat greater strength for core Facebook vs. Instagram, and still modest adoption to date of sponsored Instagram Stories. ..  Against a likely backdrop of still-strong spend growth, investment pace in relation to FB’s expense growth guide (40-50% growth in 2017 GAAP expenses) will likely remain a key point of debate.” 

Facebook, Inc. Common Stock NASDAQ: FB
Jul 21 Close 164.43 – .10 (-0.06%)
52 Week Range 113.55 – 165.70
Market Cap476.548B
Beta0.45
PE Ratio (TTM)41.81
EPS (TTM)3.93
Earnings DateJul 26, 2017

 

 

 

 

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