You're watching...
Topeka Capital Markets Victor Anthony on what to exect from Facebook’s first earnings report since its IPO.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- to FaceBook which of course is reporting tomorrow how does that have a lot crowd here with a preview of that report is we -- that he is a senior analyst.
At Topeka capital markets while these numbers don't bode well again let's put it in perspective -- represents what percent of of FaceBook revenue of about 15% of -- -- -- percent 15%.
So it's it's a small percent but still will be indication it says that.
If -- is not making money -- the other things that FaceBook is in won't make money.
While.
Is just one component of -- -- revenues roughly you know -- 55% of its Christmas revenues from.
Appetizing and I think just friends.
A -- -- what happens reported some are more positive.
Gonna last gentleman on faced with evidence that it's gonna take a hit tomorrow no way if in less the numbers are knocked out because -- was not good.
Definitely faced with nothing to -- hit the second has now he's gonna remain.
-- -- -- -- quarter.
Haven't looked at an almost losing -- yet to see why -- missed and why to spend -- -- Let me tell you that what they are citing is a more challenging environment on FaceBook -- platform reduced expectations.
For drawing something for the lowering the outlook so.
They are seeing some type of problem over there there was discussion and that may be FaceBook it's a little dramatic to say jumping the shark but.
You started to see a little -- a saturation at least in North America with 800.
Million users.
Give up tonight at 900 million users now and I think that number jumps a -- -- -- amount of sixty million.
When it reported second quarter you know fundamentally I think the platform.
Whatever happens in the quarter tomorrow tomorrow night.
I'm belong to mold of FaceBook -- alone too long to believe in -- platform.
I see significant unrealized monetization potential on a platform.
I see them expanding into commerce which I think is that significant mom.
Value created an -- aspect of that model I -- and expanded into online search mobile social service search aspects so nobody Jackson was speaking about it turns -- Being directly comparable to global some more of a social search engine which I think is -- value enhance and receive roughly.
Nine dollars -- incremental value there was and since that space and able to talk try to -- expand into an ad network.
We've also talked about expand into a jobless in some site so this significant like -- said unrealized value potential in the stock.
Which is why I'm positive one -- which.
Mark Zuckerberg is lost a little bit of his halo because of what happened but it's very important is it not that he beyond that call tomorrow and that he step up to the plate to reassure investors.
Yet totally I think he has to -- of a call.
I think he.
Has to give investors reassurance about guidance -- what would reassure you well number one allowed to.
They don't give up their put -- gotten -- have to give for yet 2012 guidance look investors have lost 24% of the money probably Libor so now.
And -- villains -- the value to have evaporated from FaceBook investments.
So you have to come out gifts to give investors.
Reassurance.
About his long term.
Growth trajectory for FaceBook how -- -- good -- business how we tend to tackle them opposition.
On mobile which is on the hot button issue -- FaceBook right now so -- become obvious to speak just give guidance and I think you will as the right thing to do.
Good to see -- thank you very much that dampening thank you very much.
