Monday, August 13

Facebook's result the chance a second prove

Facebook's result the chance a second prove

Facebook CEO Mark Zuckerberg calls show the profit of the company in the first?

Two months after the devastating IPO, Facebook come face to face with shareholders and analysts Thursday when it delivers its first earnings report as a joint-stock company.

It will win a second chance for the social media giant on the investing public and most importantly, to explain how it intends to, his work on the rapid migration of its users be adapted to mobile devices.

Facebook initial public offering in may, one of the largest camps offers to Wall Street ever take, should be a seminal moment in social media, technology and finance.

Instead the event proved a great humiliation for the company are.

A tsunami of stock orders led to embarrassing technical mishaps and "Pop" couldn't share in the expected opening day. In fact, the shares remained sunk above issue price on the first day only with the great support from banks and since almost 24 percent to about $29 from the issue price of $38.

Now angry shareholders are suing Facebook and his lead Institute, Morgan Stanley, claiming that they were being deceived.

Before the IPO, Facebook had questions about his financial prospects, especially in the growing mobile market where advertising inventory is scarce.

And there are concerns that the Facebook's advertising growth is slowing.

In a stroke just before the IPO, GM said marketing executives that she would draw $10 million in advertising from the social network, after assessment of the efforts was "hardly" consumers to achieve.

Facebook, said in a regulatory filing prior to the offer that most of the $3,710 billion, last year turnover made from which was advertising. The company said advertising revenue also decreased in the first quarter of the year compared to the quarter before.

The document reveals more challenging new users ahead for Facebook, including the difficulties of generating revenue from overseas.

About 20 percent of Facebook current user base is in the United States and Canada, and half of the users accessing the site with mobile devices. The mobile business is dominated by Facebook competitors Google and Apple.

In addition bring markets where Facebook at schnellsten-- in Europe and Asia-growing companies less revenue per year. Facebook brings $3 per user in the United States and Canada, but only $1,50 in Europe and in Asia only 50 cents.

A further concern for Facebook came late Wednesday, social delivered the game maker Zynga disappointing results. The gaming company reported a more demanding environment on the Facebook Web platform, where it makes money, by we free games and virtual goods to sell.

On the investor side Facebook's IPO said debacle was a lost opportunity for the industry, derivatives j.j. Kinahan, TD Ameritrade chief strategist.

The offer had never acted to strong interest from young investors under 35, generated, of which many had shares, but are active Facebook users. Many probably Facebook less than stellar market performance off were, he said.

"The securities industry really a chance there lost," Kinahan said.

Facebook could make some ground with a solid result report Thursday afternoon, and Wall Street sees poised to respond to.

Kinahan notes that the July per Spagat--a trading strategy where an investor believes that a stock price will be moved significantly, but is not sure what directions:-is trading at $3 before the report.

"In other words, the market expects we have result, a $3 up or down on [Facebook]," he said.

But Facebook's earnings report is not only about numbers. Investors will want to hear from the Executive Director and founder Mark Zuckerberg on the earnings call with analysts.

Zuckerberg has mostly left daily financial responsibility to the Sheryl Sandberg, Chief Operating Officer and Chief Financial Officer David Ebersman. But Zuckerberg has on the Conference call Thursday, up to speak, said Michael Pachter, analyst at Wedbush securities.

"I think, what really counts is that Zuckerberg has received on this call and say, ' I care ', and I think that he is to go", Pachter said.

"I think Zuckerberg does not answer questions, but he has to the call to be", he added. "When he rises to the call, the stock immediately." He is the CEO, he can not only by mail in. He has to show. "I think people care more than Q & A.."

Gene Munster, Piper Jaffray analyst, offers a preview of the first Facebook's earnings report since IPO, and explains why he is optimistic, what the social network company and has a "buy" evaluation on the stock with a price target of $41.

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