Facebook Earnings: Is Another Home-Run Quarter Ahead?

With Facebook earnings due out on the 23rd, we discuss the key numbers and story lines investors should look for when the social networking giant reports.

Andrew Tonner
Andrew Tonner
Jul 21, 2014 at 9:35AM
Technology and Telecom

Shares of social networking dynamo Facebook (NASDAQ:FB) seemingly can't be stopped. So far in 2014, Facebook stock has gained another 22%, handily outpacing the Nasdaq, and rival social media growth stock Twitter (NYSE:TWTR).

FB Chart

FB data by YCharts.

With tech earnings season reaching a fever pitch in the week ahead, shares of Facebook should take center stage when Facebook earnings are released after market close on July 23rd.

Facebook earnings: What to expect
Judging by analysts' average estimates, Facebook earnings won't disappoint, with both top- and bottom-line figures expected to expand more than 50% compared to the same quarter last year.

More broadly, this speaks to the investing theme that Facebook's advertising platform has continued to gain momentum, even as other peers, like Twitter, seemingly struggle to create lucrative advertising models of their own. Facebook, however, has enjoyed a critical head start compared to Twitter.

It's also hard to deny the long runways that both Facebook and Twitter could enjoy as they expand their advertising offerings into new mediums. For example, Facebook recently acquired the video advertising firm LiveRail in a move that many believe will portend a more concerted effort on Facebook's part to steal advertising spending from traditional TV networks. And that's just one example. In the video below, tech and telecom specialist Andrew Tonner previews the key numbers and storylines investors should watch for during Facebook's earnings next week.