Facebook Earnings - Look to the Monetization of Instagram

Facebook Inc. ( FB - Get Report) reports third-quarter earnings Tuesday after the closing bell, and while investors will certainly be looking at various factors relating to the company's core platform, it's the monetization of Instagram that is going to provide the next phase of growth for the data giant. More specifically, investors have been looking to Facebook to speed up the rate of monetization on Instagram, as user growth is clearly in high-growth mode. According to Goldman Sachs analysts, that monetization ramp-up may have begun. "We also see improved ad load and monetization of Instagram stories as helping to drive growth which likely suggests the consensus forecast for 4Q18 revenue growth is slightly conservative," said a pre-earnings note from Goldman Sachs. Consensus revenue estimates for the third quarter are at $13.8 billion. Also, don't count out the core Facebook platform yet. Analysts from both Goldman and RBC Capital Markets said they see signs that demand for advertising space on Facebook has remained strong. This could be a decent quarter for Facebook. Higher operating expenses are expected and likely priced into the stock as Facebook has hired more staff to tackle security issues

Apple Reports Earnings Thursday

Apple Inc. ( AAPL - Get Report) reports earnings Thursday after the closing bell. Analysts are expecting earnings of $2.78 a share on revenue of $61.45 billion. The focus will be on sales of new iPhones and the average selling price of those phones. Global demand for iPhones has been waning.  

Coca-Cola Beats Earnings and Sales Estimates

Coca-Cola Co.  ( KO - Get Report) reported earnings Tuesday, the first report following the acquisition of  British coffee chain Costa Coffee for $5.1 billion in August. Earnings were 58 cents a share, better than the expected 55 cents. Revenue of $8.25 billion beat estimates of $8.17 billion on the back of strong soda sales. The stock fell slightly in premarket trading.
 
Facebook and Apple are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.

Make Money on Closed-End Mutual Funds. TheStreet's Robert Powell recently hosted an all-star panel of experts who explained everything you need to know on closed-end mutual funds, and often-overlooked investment class. Click here to register and watch for free.