The social networker's shares have plunged more than 28% since the company's botched public offering, and there are concerns that this trend will continue. After selling so much stock at such a high valuation, the shares seem to have nowhere to go but down.
Wednesday's weak second-quarter results from Zynga (ZNGA) could also impact Facebook's results. The online gamer, which is a key Facebook partner, cut its full-year earnings guidance, citing "a more challenging environment on the Facebook web platform."
Investors on Facebook's conference call will be also be listening for information on the company's attempts to exploit mobile, which are seen as key to its future. There has even been chatter that the Menlo Park, Calif.-baed firm could enter the smartphone market.Analysts surveyed by Thomson Reuters expect Facebook to report revenue of $1.146 billion and earnings of 12 cents a share. How do you think Facebook will fare in its first quarterly report as a public company:
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV