Updated from 11:28 a.m. ET with year-over-year comps and Wednesday share prices
NEW YORK (TheStreet) - Facebook (FB) is expected to post a quarter-over-quarter drop in total advertising revenue as the growth rate of the company's costs per impressions (CPM's) decline. If slowing engagement and declining ad revenue sound worrying, bullish Facebook analysts seem to have found a way to rationalize it.
Facebook, according to multiple Wall Street analysts, may be in the process of a long-term change to its advertising business that could undermine first quarter results but provide a long-term benefit. Those expectations mean Facebook investors are likely to take quarter-over-quarter ad revenue declines as high as 10% and similarly large CPM declines with a grain of salt.
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