The Facebook earnings report is scheduled to come out next week. During the second quarter, Facebook experienced both good and bad. For these reasons, many will be looking over the report closely, hoping to see things like an update on its growth as well as the Cambridge Analytica scandal.
There are few things other things to watch out for next week when the Facebook earnings report is posted. Here are three!
Facebook Earnings Report: What to Watch For
1. Earnings per share growth
Investors should keep an eye out for what Facebook reports for their earnings per share for Q2. In terms of expectations, for the quarter, Facebook’s earnings-per-share growth should be around 20% to 40%.
Note that it is possible for the actual figure to be outside of the 20-40% range.
2. Update on Video Content Efforts
As most tech investors know, Facebook recently launched a new feature on Instagram, called IGTV. Essentially, it’s a video content platform, one that bears a striking resemblance to YouTube.
As a result, investors should stay watchful for anything that has to do with how IGTV is going. Is it a success? How many people are actually using it? What sort of demographics use it the most? Hopefully, the Facebook earnings report will answer these questions.
3. Advertising Growth
It’s no secret that Facebook makes the majority of its money via advertising. And while ad revenue has been increasing steadily for Facebook over the past few years, investors should expect to see the figure decelerate in the forthcoming Facebook earnings report.
Analysts are forecasting for advertising revenue growth to be between the range of 40%–50%, which is reasonable and very doable.
The Facebook Stock (NASDAQ:FB)
On the last day of trading for the week, Facebook closed up 0.89%.
It will be interesting to see which direction the stock takes on Monday. Will FB surge in the days leading up to the Facebook earnings report, or will it find itself in the red?
Let us know what you think in the comments below!
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Featured image: The Verge
