This Day On The Street
Continue to site
ADVERTISEMENT
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

Facebook and Yahoo! Earnings Previews

FB Chart

Facebook

Background: Facebook operates as a social networking company worldwide. Facebook, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.

Book Value: $5.35

Facebook is anticipated to report good fourth quarter earnings after the market closes on Wednesday.

The consensus estimate is currently 27 cents a share, an improvement of 10 cents (37%) from 17 cents during the same period last year. Analysts estimates range from 23 cents per share to 31 cents per share. Along with beating last year's results, this quarter is expected to beat third quarter's result of 25 cents per share.

The stock appreciated 97% in the last year, and the average analyst target price for Facebook is $60.89.

I'm not the biggest fan of Facebook because of the concentration of Mark Zuckerberg's ownership. Granted it's a double edge sword. On one hand, your interests are probably more aligned with management compared to a CEO with little or no long-term holdings. On the other hand, every shareholder other than Zuckerberg has zero say in any of the company affairs.

Shareholders will also want to diligently monitor Google's progress into social media. It hasn't made significant inroads toward Facebook's dominance yet, but continues to motivate users to migrate, or at least add Google as another social media outlet using search engine results as a gigantic carrot.

With that said, I'm also bullish on the company's prospects and absent a black swan event; shareholders should continue to watch their shares appreciate. Facebook entered the world of real money online poker with Zynga (ZNGA) in January. Facebook's monetization potential in online gambling appears huge. I wrote about the new partnership in Facebook and Zynga Increase Online Gambling Bet.

FB Revenue (Quarterly) Chart

At the time of publication, Weinstein is long Zynga.

Follow @RobertWeinstein

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FB $94.01 0.00%
YHOO $36.67 0.00%
AAPL $121.30 0.00%
GOOG $625.61 0.00%
TSLA $266.15 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs