NEW YORK ( TheStreet) -- Facebook (FB) reports earnings after the close, and as the company continues its transition to mobile, Wall Street's eyes will be focused on whether it can keep up the trends of delivering mobile revenue.
Last quarter, mobile revenue accounted for 23% of advertising sales, and CFO David Ebersman told investors Facebook became a mobile company in 2012. "2012 was the year Facebook became a mobile company," Ebersman said in an interview with TheStreet. "Mobile provides a huge opportunity for Facebook, and we're working to make sure our ad products work well on mobile."
Shares of Facebook were falling 0.7% to $27.58 in afternoon trading.
Cantor Fitzgerald analyst Youssef Squali believes that number is only going to increase, as more and more advertising money flows to devices like smartphones and tablets, where Facebook has an incredibly strong presence. Of its 1 billion-plus users, Facebook has more than 600 million of its users using its mobile apps, on devices like Apple's (AAPL) iPhone and iPad, and devices running Google's (GOOG) Android operating system. "We believe Mobile revenue should remain healthy, accounting for ~27% of all ad revenue," Squali penned in the earnings preview. He rates shares "buy" with a $35 price target on Facebook.Recent earnings from Yahoo! (YHOO) and Google should bode well for Facebook domestically, Squali wrote in his report. Weakness may come from international locales, where pricing trends have stayed weak. The industry continues to expect pricing to strengthen in mobile, as evidenced by recent comments from Yahoo! CEO Marissa Mayer on Yahoo!'s earnings call. Mayer noted the recent pricing weakness year-over-year is largely reflective of continued mobile weakness. "...
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV