Facebook’s quarterly earnings to be released this week
New York, NY, United States (4E) – In its first quarterly earnings reports since its public listing two months ago, social media Facebook is expected to post disappointing numbers. The announcement on the company’s performance this week follows one of the most highly anticipated initial public offerings in recent years.
Facebook’s report will be on traders’ radar this week, which is expected to be a busy one for corporate earnings. Profit news from tech giant Apple and other big name companies including Barclays — under pressure from its involvement in Libor interest-rate fixing scandal — will likely provide trading direction for the market this week.
Facebook, the world’s most popular social networking site, will have its chance to report its quarterly earnings for the first time as a public company on Thursday. Facebook had an inauspicious start on the NASDAQ stock exchange where shares have fallen almost $10 below their initial price. On Friday, FB shares closed at $28.76.
The initial hype with the company’s debut was saddled with technical problems on the NASDAQ, which were also to blame for a disappointing start. Questions about the company’s ability to boost advertising revenues have also contributed in the erosion of the company’s share value, particularly revenues from mobile.
Facebook’s mobile strategy remains a question mark despite having nearly a billion users. The company has so far failed to come up with an effective way to monetize tablets, phones and other mobile devices. More and more users are now accessing their site through these channels.
Facebook became the first U.S. company to become a publicly listed company whose valuation has reached more than $100bn at opening day. Still, there is optimism amidst the constant jitters amongst investors. Their massive 900 million users, and their expertise to make companies post ads that specifically target their customers make Facebook popular with advertisers.