Analysts surveyed by FactSet are expecting Facebook to report adjusted earnings of 97 cents per share on revenue of $6.93 billion for the quarter. For the same quarter last year, the company reported adjusted earnings of 57 cents per share on revenue of $4.50 billion.
Canaccord Genuity's Senior Equity Analyst Michael Graham joined CNBC's "Power Lunch" on Wednesday afternoon to talk about the social network's growth opportunities.
"One of the things we really like about it is that it's a broad-based revenue growth story where users are growing and engagement is improving. And then the monetization of each user is improving as well. So they've got a lot of different ways that they can keep winning," he said.
Some investors are worried about Facebook since video and photo-sharing app Snapchat has a younger demographic, noted CNBC's Melissa Lee. "Does that matter?" she asked.
"It does matter. If user growth slows down a little bit now, it's not really going to impact revenue now, but it's going to be an important leading indicator for what might come in the future," he answered.
However, Facebook has impressed the firm by consistently reporting above 10% growth of its monthly userbase, despite how many people already have an account, Graham noted.
"If userbase starts to slow down a little bit, it will matter for the stock. We're a little nervous about that, but it hasn't happened yet," he said.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Facebook as a Buy with a ratings score of A-. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that the team rates.
You can view the full analysis from the report here: FBFB data by YCharts