Facebook reports earnings in less than an hour!The one number we will pay more attention to than any other is ADVERTISING REVENUES.
If that number comes in BELOW $921 million, 19% growth over the same quarter last year, than Facebook will have officially entered a DISASTER ZONE.
The truth is Facebook’s ad revenues should come in WAY above $921 million.
$921 million is the “consensus” number on Wall Street – which really means it’s the number Facebook fed to Wall Street analysts knowing that it would be able to easily beat it. (More on this paradigm here.)
So, if Facebook can’t beat a number it once thought would be easy to beat, its business must therefore be in much worse shape that it was expecting only weeks ago.
Here are the other consensus numbers Facebook MUST crush:
- Revenue of $1.147 billion
- Non-GAAP EPS of $0.12
After yesterday’s Zynga disaster, everyone expects Facebook’s payments revenues to be surprisingly low. This might effect revenue and profits, and it’s why no number is as important as ADVERTISING REVENUES.