In a program on The Street, Ruben Ramirez reported that Facebook Inc (NASDAQ:FB) will report its third quarter earnings after market close on Tuesday. Analysts are expecting a lot from the social media company. Ramirez talked to Wedbush Securities’ Shyam Patil. Patil is very optimistic about Facebook’s revenue. He said that the company will report a double digit revenue increase from ads business. Facebook Inc (NASDAQ:FB) will report a strong quarter because it has recently revamped its ads business, invested in some products and the company’s overall stock price is strong. Patil claimed that all his agency partners and experts are expecting a great quarter from Facebook Inc (NASDAQ:FB). Facebook ads business is likely to go up by 6%, but Patil thinks that it will be around 12%.
Patil said that his topline revenue expectation from Facebook Inc (NASDAQ:FB) is just a little bit lower than other analysts. Patil is eyeing for $3 billion topline revenue from Facebook in the quarterly report. He said that in the larger perspective, expectations are good from Facebook Inc (NASDAQ:FB) and his ads business expectations from Facebook are above the consensus estimates.
Patil thinks that video ads are not giving results for Facebook Inc (NASDAQ:FB) in terms of revenue for now. It would take around one more year for Facebook to start monetizing on video ads. Answering a question about the role of WhatsApp and Instagram in the revenue generation for Facebook, Patil said that these two acquisitions will pay off in the long term and currently there is a very little that Facebook Inc (NASDAQ:FB) can expect from these services. He thinks that Facebook will never change user experience of Instagram as its already perfect and giving users what they need. Patil has set a $90 share price target for Facebook Inc (NASDAQ:FB).
Ken Griffin‘s Citadel Investment Group held 4.58 million shares of Facebook Inc. (NASDAQ:FB).