![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Friday, December 13, 2013 11:51:03 AM
In September, just before announcing its launch of paid advertisements, the photo-sharing company told the Wall Street Journal it had over 150 million monthly users. In today’s release co-founder Kevin Systrom claimed that over half of them are on the app every single day. When you have 75m+ users using your app every day, advertisers will pay a pretty penny to reach them. While 150 million users is no small change, the app still has much more room to grow into. Parent company Facebook touted an impressive 1.19 billion active users as of September, 2013. With such a gigantic base of users and continued development of new features, prospects for revenue and earnings growth are looking robust, but the Wall Street expectations don’t match up to hedge fund forecasts.
Throughout 2013 sell-side analysts that make up the Wall Street consensus have consistently underestimated the growth rates of social media companies. Looking forward to the next 2 earnings reports we see further evidence of Wall Street under-representing the market’s expectations for Facebook. The information below is derived from data submitted to our platform by a set of Buy Side and Independent analyst contributors.
(Click to enlarge)
Our consensus is more accurate than Wall Street 69.5% of the time because it represents unbiased market expectations. By tapping into a wider distribution of over 3,300 contributors including hedge fund analysts, asset management firm analysts, industry experts, and students we are better able to capture the true market outlook.
(Click to enlarge)
Looking forward to the next 2 earnings periods buy side and independent analysts are expecting Facebook’s earnings, including the new revenue stream from Instagram, to exceed the sell-side’s expectations for a third and fourth straight quarter. In the upcoming FQ4’13 report which is expected at the end of January the Wall Street consensus and our community are expecting similar numbers to be posted. For the next quarter out, FQ1’14, there is a much bigger differential in the expected EPS. The magnitude of the difference between the Wall Street and our consensus numbers often identifies opportunities to take advantage of expectations that may not have been priced into the market. Our quantitative research suggests that an upwards pre-earnings drift is associated with approaching an earnings report with a large differential between ours and Wall Street expectations as we are seeing for FQ1’14.
Our community seems to agree that Facebook will be no exception to the recent trend of social media companies beating Wall Street expectations.
Recent META News
- Dow Dips, Nasdaq Gains, Oil Prices Rise • IH Market News • 06/26/2024 11:00:03 AM
- SolarEdge Stock Falls 13%, Wegovy Approved in China, Grail Nasdaq Debut, Apple Rejects Meta Chatbot • IH Market News • 06/25/2024 10:36:11 AM
- Bitcoin Drops to $60,000, Mt. Gox to Reimburse Creditors in July, Riot Platforms Board Restructures • IH Market News • 06/24/2024 07:09:18 PM
- UPS Divests Coyote Logistics in $1.025 Billion Deal with RXO, Under Armour Agrees to $434 million Settlement, and More News • IH Market News • 06/24/2024 11:00:20 AM
- Trump Media Resells Stocks and Warrants; KB Home Exceeds Q2 Expectations, and More News • IH Market News • 06/20/2024 10:55:11 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/18/2024 08:42:26 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/18/2024 08:03:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 10:15:11 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 10:13:54 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/17/2024 10:12:21 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/17/2024 09:05:21 PM
- Goldman Sachs Raises S&P 500 Forecast for 2024; Disney Secures Deadpool & Wolverine in Chinese Cinemas, and More • IH Market News • 06/17/2024 10:49:12 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/14/2024 08:50:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 10:33:20 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/13/2024 08:56:04 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/13/2024 08:40:23 PM
- Tesla Surges 5% in Pre-Market; Virgin Galactic Drops 9% Following Reverse Stock Split, and More News • IH Market News • 06/13/2024 11:24:25 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 01:49:15 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 01:47:48 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 01:46:31 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/12/2024 09:00:03 PM
- Paramount Ends Skydance Talks, Oracle Shares Surge 8.7% on New Partnerships, and More News • IH Market News • 06/12/2024 11:19:10 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:55:02 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 06/11/2024 08:26:51 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/11/2024 01:18:41 AM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM
Bantec's Howco Short Term Department of Defense Contract Wins Will Exceed $1,100,000 for the current Quarter • BANT • Jun 25, 2024 10:00 AM