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Facebook Earnings Cheat Sheet

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    Citi Investments Research managing director Mark Mahaney gives his outlook for Facebook earnings.

  • Duration 3:47
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They aren't -- -- thanks so much.

Separate from reports second quarter results after the -- its first quarterly results since.

Since going public back in mid may what should investors be looking for let's get your earnings cheat sheet for mark -- managing director at Citi Investment Research mark.

What would they -- huge disappointment after the bell last night what do you think that means for FaceBook.

It's hard not to draw.

Negative implications from losing they went out of their way to say that they were seeing a decline in usage via that FaceBook platform some changes on that FaceBook platform and a migration of FaceBook users over to mobile devices.

Which are harder to monetize for Zynga and also hard to monetize for FaceBook.

So what is your number one question on the call today what is the piece of information that you don't have that you need to glean from it.

I'm gonna actually -- need to first is their mobile monetization strategy so it's about a third of their usage is off -- mobile devices Smartphones.

Now lap.

Tablet six -- so what kind of success have they seen so far in some of their new mobile -- are called sponsored mobile stories.

And second question actually is the level of engagement I -- this company's gonna be close to a billion billion active users.

You don't the next couple of months but what's happening to the engagement per users -- any sign of FaceBook fatigued if there isn't -- -- got more opportunity the first sign of FaceBook -- people less engage with the platform.

That's a danger sign for the company knows the two key issues what are the numbers they are looking for.

We're looking for about a billion in revenue one point one billion in revenue and about eleven cents in earnings that's relatively in line with consensus.

The challenge for FaceBook the stock is that that does imply pretty significant slowdown in the growth rate this growth rate is slow down dramatically over the last three or four quarters.

If that growth rate doesn't stabilize the stock not as only cat it's not only -- the stock would go down.

Some of the reports floating around today one -- -- said that FaceBook.

Might be looking -- -- selling in creating a phone what do you think about that you care is a good idea.

That seems like a lot of execution risk but look there's no doubt that there's been what we call the hardware station of the Internet.

-- coming out devices Amazon coming out devices probably its own.

Smartphone by the end of the year and so -- software and hardware converge you know some of the leading providers in the space Internet.

Internet application providers.

Probably have to go down that path so it's greater execution risk it's probably a defensive move but it may well be something that FaceBook has to do do you care works October summit called.

You wanna hear from -- I think -- yes that yes I do I would like to hear from I think investors deserve to hear from him he was involved with -- fair amount.

Of the other wrote Joseph lewis' first public earnings call -- -- -- -- fifteen years I've -- I've covered Internet stocks have never had a CEO not show up on the first earnings call.

-- guys did it Amazon eBay sows no particular reason why Mark Zuckerberg can't and I think there's a basic questions he should address like his long term views.

For the company and to what extent he considers public shareholders partners or not.

What is he just get on the call on hot stocks sort of makes his speech and then goes -- -- let Sheryl Sandburg handle all the questions would that be disappointing to you into investors.

No I I don't think so I mean whether he actually states I would assume he'd stay for the questions -- kind of opt for him not to.

But you know I think he at least needs to -- -- there and that makes some basic statements about and he's put this in the the the of the public -- so he could just simply repeat those that's fine but you know we've banning public -- is -- -- level of engagement from the from him.

They also wanna sends his attitude towards them best way out of there for him to do that is get on the earnings call.

That's right because it's been lacking -- -- Haiti thank you so much and FaceBook along with Amazon thanks to relax Expedia and Coinstar.

All reporting after the bell you don't want to miss all of the earnings action this.

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