Jim Cramer: Facebook Should Be Backing Small Businesses
Let's talk about Facebook.
The company is set to report earnings on Wednesday, April 29.
JMP analyst Ronald Josey reiterated his outperform rating on Facebook. He affirmed his share-price target at $215.
Morningstar analyst Ali Mogharabi puts his fair value estimate at the same $215.
“While we expect COVID-19 to lower Facebook revenue in 2020, we also foresee the pandemic strengthening the firm’s network effect,” he wrote in a report last month. “We expect a return to double-digit revenue growth in 2021, as higher interaction and usage after the pandemic will attract rebounding ad dollars.”
TheStreet's Annie Gaus noted that she's watching product development, operating expenses, and advertising trends when the company reports earnings.
In a recession, ad spending is among the first things to fall. And as the second-largest digital ad platform in the world (second only to Google), we've already seen the evidence in plunging cost-per-click rates that marketers have pulled back spending on Facebook, she noted about Facebook's advertising trends.
But, what does Jim Cramer want to hear from Mark Zuckerberg, CEO?
Watch the full video above for Cramer's full take.
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Cramer and the team are weighing in on what members need to know about the coronavirus pandemic's impact on the market. Here's how you can recap his entire April show.
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