'Pandemic and advertiser boycott create heightened uncertainty': Here's what 3 analysts expect from Facebook's quarterly earnings
is scheduled to release its second quarter results after markets close on Thursday, and Wall Street fears the recent advertiser boycott may curb the company's recovery.
If the company's previous report is anything to go by, there's still room to please Wall Street come Thursday. Facebook's first-quarter earnings beat revenue and profit estimates, and largely alleviated concerns that ad sales would crumble amid the coronavirus pandemic. Analysts expect the boycott to drive a steep decline in ad revenue growth, but some see the protests as leaving little lasting impact on Facebook's trajectory.
The firm expects results to land largely in line with Wall Street estimates. Strong usage of Facebook and Watch will emerge as second quarter"bright spots," while ongoing protests could draw"cautious commentary," the analysts wrote. Unless revenue falls below expectations, Facebook will likely maintain its guidance for expenses to land between $52 billion and $56 billion through 2020.
"Despite the boycott, we anticipate that engagement has remained strong across the company's social platforms as a result of the pandemic," they wrote. Still, the"pandemic and advertiser boycott create heightened uncertainty" heading into the report's release, the team added. After strong improvements across Facebook's advertising segment through April and May, analysts led by Stephen Ju expect the boycott to slow the company's recovery through the summer. Data also suggest that entertainment, media, dining, and retail ad spending fell less than anticipated. The firm left its estimate for ad spending unchanged at 3% year-over-year growth, adding that a sizable pool of ad partners has remained with the company.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Facebook Ad Boycott Extends Beyond July: ‘Everyone Agrees Facebook Has Got To Change’Unsatisfied with Facebook’s concessions, some major advertisers will continue their boycott.
Read more »
Spotify revenue misses as coronavirus deters advertisersSpotify Technology SA missed quarterly revenue expectations on Wednesday and forecast a soft current quarter, due mainly to a decline in ads as the COVID-19 pandemic kept advertisers at bay.
Read more »
GE loses less cash than expected even as pandemic pummels earningsGeneral Electric Co lost less cash than estimated in the second quarter even as the coronavirus pandemic pummeled demand in its aviation business, resulting in a wider-than-expected quarterly loss.
Read more »
'A key beneficiary of shelter-in-place and work from home': Here's what 4 analysts are saying ahead of Amazon's quarterly earnings (AMZN) | Markets InsiderAmazon is scheduled to report its second quarter earnings on Thursday after market close. Shares of Amazon are up more than 63% year-to-date, w...
Read more »
Here's what to expect from Procter & Gamble earningsShares of Procter & Gamble, which has a market value of $319 billion, have risen 3% so far this year.
Read more »
Comcast is set to report earnings before the bell — here's what Wall Street expectsThis is the first earnings report since Comcast's NBCUniversal has launched its new ad-supported streaming service, Peacock.
Read more »