Facebook reports earnings Wednesday February 1st after the close.
It’s had 14 straight beats.
It’s beaten earnings estimates by 17%, on average.
The stock price goes up 6% after reporting earnings, on average.
Facebook’s stock price will go up or down after reporting earnings depending on a couple of things.
Last quarter, Facebook warned investors that growth would be slowing down.
If investors focus on the slowdown in Facebook’s growth, then the stock price will go down after reporting earnings.
If investors focus on the advertising possibilities of Instagram, WhatsApp, and Oculus Rift, then Facebook’s stock price should go up after reporting earnings.
Facebook allowed only a few companies like Nike (NKE) and Netflix (NFLX) to advertise on Instagram. Now Facebook allows all companies to advertise on Instagram.
It’s predicted that Instagram could generate $3.6 billion in advertising revenue by the end of this year.
We want to hear on the earnings call how well Facebook Live is doing. At first, Facebook allowed only celebrities to use Facebook Live. Then it opened it up to everyone.
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