Bullish Bets On The Rise Ahead of Facebook Inc (NASDAQ:FB) Earnings Call

0
915

Dallas, Texas 07/27/2015 (Financialstrend) – Facebook Inc (NASDAQ:FB) has enjoyed an impressive run since the start of the year as the stock is already up by 40%. The giant social network has continued to perform better than expected in its core operations seen by the growing optimism among investors about its long-term prospects. The company is to report its earnings when the market closes on Wednesday with the Street anticipating a 36% increase in revenue, which could come in at $3.97 billion.

 Wall Street Expectations

 The Street expects earnings per share of 47 cents a share which should be a 12% increase from last year’s same period levels.  Advertising is Facebook Inc (NASDAQ:FB)’s core business, and the Street will wait to hear whether the company was successful in attracting a large advertiser in the last quarter.  This is especially important as the company continues to battle the likes of Twitter Inc (NYSE:TWTR) and Google Inc (NASDAQ:GOOGL) for online sales.

Facebook Inc (NASDAQ:FB)’s research and development expenses more than doubled in the first quarter to $1 billion with marketing and sales expenses rising to $620 million. Increased spending according to analysts is not of concern at the moment as it is expected to generate long-term value in terms of realizing new opportunities for growth. Earnings and sales figures should attract a sizable amount of attention, but user growth engagement, and monetization aspects of the business will also be closely watched.

Video Offerings Prospects

The Street will also wait to hear what plans Facebook Inc (NASDAQ:FB) has for Video offerings, seen as an avenue that can offer more opportunities for growth, especially on the advertising front. The company’s marketing partner Bidalgo has already alluded to plans intended to triple sales, thanks to a new technology that can be used to automate the process of making personalized videos.

Facebook is becoming a leader on the video front as more users on the network prefer to watch video ads instead of the traditional static images. Automated videos are expected to give Facebook Inc (NASDAQ:FB) an advantage over YouTube as the race to attract more ads spend heats up.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.