Facebook Q4 Earnings preview - all you need to know

01:45, 29 January 2020

Facebook will announce its Q4 earnings results on Wednesday, Jan. 29, after market close.

Analysts expect diluted EPS of $2.49, a jump of 4.3% YOY, while revenue could grow by 23.4%, from $16.9 billion to $20.9 billion.

The Silicon Valley giant has registered a total return of more than 50% in the past year, which is approx. double the S&P 500. Facebook (FB) has also managed to increase its monthly active users in the past two years by 8.69%, to 2.3 billion. A jump of approx. 8% is expected this time around. According to FactSet.com, advertising accounted for 98.5% of Facebook’s $55.8 billion in 2018 revenue, and analysts expect it to make up for the same percentage of its projected $70.5 billion 2019 revenue.

The markets are also waiting to see what will happen with WhatsApp monetization, especially after Facebook announced it has no plans to run ads on this platform in the near future. Instead, it might use WhatsApp for peer-to-peer payments or business messages. Additionally, Facebook Pay could be the catalyst for the company’s payments plan, especially after Libra has been stalled. Such a move could Facebook Marketplace to reach its full potential. 

Stifel reiterated the buy rating, with a price target of $240 - $250, while Bernstein sees the stock outperforming the market. TipRanks.com’s analyst price target see FB stock at $247.03, a 13.43% increase from the last price of $217.79.

Sources: investopedia.com, marketwatch.com, thestreet.com, finviz.com, tipranks.com, factset.com

The information presented herein does not constitute and does not intend to constitute Investment Advice. The information contained herewith is a compilation of public stock recommendations issued by various financial analysts and organized in an easily presentable format, for information purposes only. Key Way Investments Ltd does not influence nor has any input in formulating the information contained herein. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience, or current financial situation. Users/readers should not rely solely on the information presented herewith and should do their research/analysis by also reading the actual underlying research. Users/readers should also consider the risk of encountering significant losses when trading CFDs. Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.

Why Capex.com?

  • CAPEX is a fully regulated broker. We’re licensed by CySEC and registered by multiple finance entities around the globe.

  • We put safety first! Our security systems and measures are designed to keep your data and funds safe at all times.

  • We designed our trading conditions to meet the needs of even the most sophisticated traders!

  • Trade over 2,100 CFDs (Contracts For Difference), from Forex and Indices to ETFs, Commodities and Cryptocurrencies!