Facebook Expected To Continue Beat Streak

Discussion in 'Stock Market Forum' started by PaulSchinider, Apr 24, 2014.

  1. PaulSchinider

    PaulSchinider Well-Known Member

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    Facebook Inc. will announce results for the first quarter of its fiscal 2014 today and is expected to post $2.36 billion in revenues with an EPS of 24 cents

    Facebook Inc. (FB) is set to report results for the first quarter of its fiscal year 2014 (1QFY14) after markets close today. It is expected that the company will beat analysts’ estimates for earnings and revenues.
    There are several factors to consider before the earnings announcement given that the company is leading the social media space. Over the last one month, Facebook has shed more than 6% of its value primarily due to the sell-off in momentum stocks. However, on a year-to-date basis, the stock price is up nearly 17%. Revenues and Earnings Estimates

    Facebook reported revenues of $2.59 billion in the last quarter of 2013, reflecting a 63.1% year-over-year (YoY) increase driven by stellar growth in mobile ad sales. For the current quarter, analysts estimate revenues of $2.36 billion, an increase of 61.6% YoY. Furthermore, earnings per share (EPS) are estimated to come in at 24 cents, an increase of nearly 99% YoY.

    Facebook's revenues and growth from mobile will be the most sought after metrics during the earnings release. Last quarter, the company generated nearly 53% of its advertisement revenues from mobile. Total advertising revenues were $2.34 billion in 4QFY13, reflecting a 76% YoY increase. Historically, first quarter ad revenues declined quarter-over-quarter (QoQ), and we expect the trend to continue this quarter. According to consensus estimates, ad revenues are expected to come in at $2.14 billion, a 71% YoY growth and a 9% QoQ decline.

    Mobile ad revenues are estimated to come in at $1.22 billion, a 2% QoQ fall.


     
  2. wanderingwildman

    wanderingwildman Well-Known Member

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    At the risk of sounding cliche, it is kind of sad that Facebook is one of the biggest revenue generators. Why can't we find a health food company that could make this kind of sales? Do you think technology products are safe during a down economy? How did it come to this?
     
  3. Peninha

    Peninha Senior Investor

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    Facebook is an impressive money making machine, lucky those who got their stock soon enough, they are rich already I suppose. Technology products are one thing, Facebook is another, it's a world phenomenon.
     
  4. Strykstar

    Strykstar Well-Known Member

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    Yes, but how long can it last?
    I hear about kids leaving Facebook already because their parents are aboard now, so if that trend is true and continues, we might see Facebook stocks starting to drop hard.
    It already took a dip when they bought another company last month, right? So they have to be careful about their business moves as well as their website.
     
  5. PaulSchinider

    PaulSchinider Well-Known Member

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    May be but Facebook want to get more people are attached in there social network to get more engaging time, as u see mostly anyone using facebook they get engaged mostly 2 - 3 hours normally
     
  6. wanderingwildman

    wanderingwildman Well-Known Member

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    Facebook is terribly addicting. I am quite ashamed of the fact that I normally check Facebook the second I walk in the door.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I bought a little early on. I usually wait 6 months after the IPO, but I didn't with this one - and it was a mistake, of course. :D

    I eventually got out north of 50, but it took a while to get there.
     
  8. Peninha

    Peninha Senior Investor

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    I really don't think so Strykstar, regardless of what people think the number of users continues to grow and I think that is what makes Facebook worth more and more, more audience, more money like in everything.
     
  9. wanderingwildman

    wanderingwildman Well-Known Member

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    I am surprised you didn't make more. Did you buy Myspace also? I would have loved to have been in on the ground floor some of these places.
     
  10. PvtParts

    PvtParts Guest

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    And with all of the moves that Facebook has been making lately (buying Oculus Rift, buying WhatsApp, attempting to Snapchat, etc), losing momentum seems very unlikely. Are there other good arguments against more Facebook growth?
     

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