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- What to Expect from Facebook's Earnings Report?

  Facebook- What to Expect from Facebook's Earnings Report? Facebook (FB) is expected to report another blockbuster quarter on Wednesday. Despite the economic damage to online ads and antitrust scrutiny amid the economic turmoil associated with the Covid-19 outbreak, The Company is expected to report another blockbuster quarter on Wednesday. Digital advertising is coming back fast, as the strong results of Snapchat maker Snap (SNAP) last week showed. Analysts are expecting a net profit of about $ 7 billion from Facebook, which translates to $ 2.61 per share. Company revenue is projected to increase by approximately 33 % to $ 23.71 billion, and increase its user base by millions. Analysts estimate that the number of daily members will reach 1.87 billion and the monthly user base will reach 2.83 billion. In March, Facebook CEO Mark Zuckerberg said there were one million Facebook stores and 250 million visitors. Investors have been wondering about the impact of a change in Apple's mobile operating system technology rolled out this week for months. On Monday, in an update to the iOS operating system, Apple changed its software to ask iPhone and iPad users to enable tracking of an app.

Facebook (FB) is expected to report another blockbuster quarter on Wednesday.

Zuckerberg and Apple (APPL) CEO Tim Cook have been discussing this issue for months. Facebook seems unlikely to share details of the impact on its users. Developers previously said this would hurt ad revenue. It's not entirely clear what Apple users will do when offered the choice, or the effectiveness of potential workarounds developed by Company. BofA Securities analyst Justin Post said that Facebook expects a modest impact on ad spend on the platform, as it has enough time to devise and develop workarounds. Zuckerberg took a less cautious stance in March and said he was confident the company would handle the situation. In addition, the CEO said he thought this situation could benefit the company. Of the analysts covering Facebook, 49 rated the stock as "Buy", 6 as "Hold" and 3 as "Sell".  

Source:  barrons.com

 

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