Here's the level to watch with Facebook(FB).
The Technicals
As noted in the above chart, FB ended the week in the red despite a great earnings report.
Is this just a blip before the next new high? Possibly. However, I believe these are not attractive levels for initiating a long position.
I will be watching the $110 level on the downside if it ever gets there as a POTENTIAL buy.
The Quarter
Per Yahoo finance, these are FB results.
Adjusted earnings per share: $1.41
Revenue: $8.81 billion
Monthly active users: 1.86 billion
Daily active users: 1.23 billion
% of ad revenue from mobile: 84%
Via Bloomberg, here’s a quick snapshot of what investors were looking for from the social media giant:
Adjusted earnings per share: $1.31
Revenue: $8.5 billion
Monthly active users: 1.84 billion
Daily active users: 1.21 billion
% of ad revenue from mobile: 85%
In % terms, here is how they fared vs expectations.
Adjusted earnings per share: +7%
Revenue: +3.5%
Monthly active users: +1%
Daily active users: +1.6%
% of ad revenue from mobile: -1%
They beat all the metrics save for % of ad revenue from mobile.
They don't break down their % of revenue from whatsapp, instagram, and occulus or at least I could not find it. Safe to say whatsapp and occulus % would be tiny if any and monetizing instagram is still in the early stages.
I will say, I hear more of my friends complaining about the number of ads shown in their facebook news feed. I read somewhere that FB will address this, though I could not find the article.
Facebook and TV
Per Bloomberg-
"That means the next big technology prizefight isn't Facebook versus Google versus Snapchat, but the digital world duking it out against television. All of them have their eyes on the roughly $190 billion spent each year on TV commercials. If Facebook grabs just 3 percent of ad dollars spent on TV in the U.S., it would add more than $2 billion, or about 7 percent, to its annual revenue."
Can we expect to see original content from Facebook in the coming years?
According to Recode-
"Facebook is starting to talk to TV studios and other video producers about licensing shows, with the hope of boosting the social network’s video efforts.
The talks, which include discussions for scripted shows, game shows and sports, are being led by Ricky Van Veen, the College Humor co-founder who joined the company earlier this year."
I get it, people like watching videos. Youtube has pushed into original content. I see the shows often when I open the app, but for some reason, I have never clicked on it. It will be interesting to see how Youtube original content does.
In my mind, I have Netflix, Amazon, and maybe HBO or showtime. That is all my mind handle.
Facebook has the money and the audience, I just wonder if they aren't entering into too many categories?
I get the move to VR, it's a platform, where no dominant player has captured mindshare. Original content is different, everybody is either into it or getting into it. If they are going the original content route, I would not be surprised if they pushed into live sports.
So, what's the trade?
Every investor has different time frames. For me, I am in wait and see mode. Like I noted earlier, I will watching the $110 level if it ever gets there.
If you found this added value to you, please hit "like"
Thanks and have a good weekend.
Caleb
As noted in the above chart, FB ended the week in the red despite a great earnings report.
Is this just a blip before the next new high? Possibly. However, I believe these are not attractive levels for initiating a long position.
I will be watching the $110 level on the downside if it ever gets there as a POTENTIAL buy.
The Quarter
Per Yahoo finance, these are FB results.
Adjusted earnings per share: $1.41
Revenue: $8.81 billion
Monthly active users: 1.86 billion
Daily active users: 1.23 billion
% of ad revenue from mobile: 84%
Via Bloomberg, here’s a quick snapshot of what investors were looking for from the social media giant:
Adjusted earnings per share: $1.31
Revenue: $8.5 billion
Monthly active users: 1.84 billion
Daily active users: 1.21 billion
% of ad revenue from mobile: 85%
In % terms, here is how they fared vs expectations.
Adjusted earnings per share: +7%
Revenue: +3.5%
Monthly active users: +1%
Daily active users: +1.6%
% of ad revenue from mobile: -1%
They beat all the metrics save for % of ad revenue from mobile.
They don't break down their % of revenue from whatsapp, instagram, and occulus or at least I could not find it. Safe to say whatsapp and occulus % would be tiny if any and monetizing instagram is still in the early stages.
I will say, I hear more of my friends complaining about the number of ads shown in their facebook news feed. I read somewhere that FB will address this, though I could not find the article.
Facebook and TV
Per Bloomberg-
"That means the next big technology prizefight isn't Facebook versus Google versus Snapchat, but the digital world duking it out against television. All of them have their eyes on the roughly $190 billion spent each year on TV commercials. If Facebook grabs just 3 percent of ad dollars spent on TV in the U.S., it would add more than $2 billion, or about 7 percent, to its annual revenue."
Can we expect to see original content from Facebook in the coming years?
According to Recode-
"Facebook is starting to talk to TV studios and other video producers about licensing shows, with the hope of boosting the social network’s video efforts.
The talks, which include discussions for scripted shows, game shows and sports, are being led by Ricky Van Veen, the College Humor co-founder who joined the company earlier this year."
I get it, people like watching videos. Youtube has pushed into original content. I see the shows often when I open the app, but for some reason, I have never clicked on it. It will be interesting to see how Youtube original content does.
In my mind, I have Netflix, Amazon, and maybe HBO or showtime. That is all my mind handle.
Facebook has the money and the audience, I just wonder if they aren't entering into too many categories?
I get the move to VR, it's a platform, where no dominant player has captured mindshare. Original content is different, everybody is either into it or getting into it. If they are going the original content route, I would not be surprised if they pushed into live sports.
So, what's the trade?
Every investor has different time frames. For me, I am in wait and see mode. Like I noted earlier, I will watching the $110 level if it ever gets there.
If you found this added value to you, please hit "like"
Thanks and have a good weekend.
Caleb
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