Facebook Earnings Report: It was not long ago when Facebook Inc (NASDAQ:FB) was nothing more than the laughing stock of Wall Street. How things can change in such a short period of time. Over the past three months, its share price has grown from roughly $19 to $32 (at the time of publishing).
As Facebook Inc (NASDAQ:FB) prepares to report fourth-quarter earnings on Wednesday, many are wondering what the company has up its sleeve. Will this help improve the company’s standing with investors? Or will Facebook disappointment, resulting in another dip?
What happens next is anybody’s guess, however, here is some insight from a recent piece published by CNET:
“Wall Street’s consensus is that the social network will report $1.52 billion in revenue and earnings per share of $0.15. Should Facebook miss or clobber the top line number, the stock will move, but more is at stake. Facebook needs to show that its milking more money from its growing mobile audience, that other cash-making strategies are truly working and, above all, keep the Street convinced that its business is on the right track.”
When you look at that information, one thing should pop out in your mind: “Facebook needs to show that its milking more money from its growing mobile audience.”
If Facebook Inc (NASDAQ:FB) wants to keep its momentum, they must prove that its mobile ad business is growing. Many see this as the future of the company, and there is no better time than now to show that things are moving in the right direction.
Here is some follow-up information from the same CNET article:
“When Facebook reported its third-quarter earnings, however, the company proved to investors that it was serious about making money, particularly on mobile, where it now has 604 million monthly active users. Overall, mobile accounted for 14 percent of Facebook’s advertising revenue, or roughly $152.6 million, in the third quarter. At the time, Facebook also said that it was making $3 million per day from so-called Sponsored Stories in the News Feed on mobile phones and tablets.”
What do you think is next for Facebook’s advertising revenue as far as mobile is concerned?