This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Facebook Not 'Liked' at Oppenheimer

NEW YORK (TheStreet) -- The advertising business isn't all Mad Men and fancy suits. Sometimes you have to work. If it's a seasonally weak quarter, results may not be in your favor, if your company is Facebook (FB).

Oppenheimer analyst Jason Helfstein lowered earnings estimates on the social networking giant going into the company's first-quarter, citing concerns over weak seasonality in the advertising business. He noted the first-quarter is heavily weighted toward lower-priced spending and, combined with Facebook's mobile advertising product, Helfstein is cautious.

The analyst lowered non-GAAP earnings estimates for both 2013 and 2014, lowering 2013 estimates to 67 cents from 72 cents per share, while 2014 estimates were lowered to $1 per share from $1.08 per share. He kept his "outperform" rating, but lowered the price target to $32 from $33.

Facebook is rapidly transitioning toward mobile, with CFO David Ebersman saying in an interview that 2012 was the year Facebook "became a mobile company." Facebook's most recent product announcement, Facebook Home, is representative of that mindset.


Helfstein noted mobile accounted for 60% of the time spent on Facebook in February, up from 34% in March 2012, with Facebook accounting for nearly a quarter of all time spent on the mobile web, up from 11% in March 2012. At the Facebook Home announcement, CEO Mark Zuckerberg said consumers are looking at their phones 100 times a day, so this data backs up that claim.

Despite consumers increasingly turning toward mobile usage, mobile advertising is still not up to par with desktop advertising. It appears the shift is turning in favor of mobile, given Facebook's recent earnings, but the process is still playing out.

Analysts polled by Thomson Reuters expect Facebook to earn 12 cents per share on $1.43 billion in revenue for the first quarter.

Once the seasonally weak first-quarter ends, that should provide some relief for Facebook. "Given the difficulty in estimating mobile advertising, the impact of the Facebook Exchange and 1Q seasonality, we see Street estimates at a positive inflection point," Helfstein wrote in his note.

Shares of Facebook were lower in early Tuesday trading, off 0.63% to $26.68.

--Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs