14 DAY TRIAL // It’s been a while since Wall Street analysts have shown any kind of excitement regarding Facebook’s earnings reports. With the first trimester results around the corner, things don’t seem to have changed.
According to estimates, Facebook is to show noticeable improvement in the mobile division, as well as a 43% growth in advertising revenue, compared to the same time period in 2012.
Despite everything, investors still don’t seem to be too confident in the social network.
It is also expected that the company will report revenues of $1.44 billion (€1.1 billion), which translates in $0.13 (€0.09) earnings per share, CNET writes.
For the most part, investors seem to fear that Facebook isn’t going to achieve its target of growing the mobile revenue to $382 million (€291 million), which is 25% over the previous quarter.
They don’t seem too sure about the revenue from advertising either.
Some analysts, however, seem to be more trustful of the social network, especially since the company has found a way to make money out of its mobile app.
The company’s shares have kept a steady level over the last months, ever since the company reported their fourth-quarter earnings on January 30.
The latest Nasdaq data shows Facebook stock at $26.98 (€20.52), up from the previous day by a mere 0.48%.
The company held its initial public offering back on May 18, 2012. What was considered to be one of the biggest IPOs in technology turned out to be a scandal waiting to happen.
With brokers hiding some of the company’s shortcomings and betting on the network’s name, Facebook was overvalued.
The price per share at the time was placed somewhere between $34 (€26) and $38 (€29). However, investors wised up and a week after the IPO, Facebook stock closed at $26.81 (€20.40), a value similar to the current one.
Ever since that moment, investors have become leery of Internet companies as a bunch and Facebook is at the top of their black list.