Facebook Inc (NASDAQ:FB) is going to announce earnings on 23rd of June and there would be a lot of focus on how the company would monetize the video ads and the growth in mobile ads.
Mark Mahaney, Managing Director at RBC Capital was on “Bloomberg West” and he was discussing about Facebook Inc (NASDAQ:FB)’s earnings and the factors investors would be looking into going forward. The revenue from mobile ads contributed almost 60% in Q1 this year as compared to 0% when the company actually went public.
“People are going to focus on Mobile, people are going to focus on the comps. Now we are starting to get tougher year over year comps” Mahaney stated.
He said that there was acceleration in Year over Year revenue growth by the company and that might come down in the quarters to come. So the main measuring factor would be to measure the decline in Year over year revenues each quarter.
He also said that he would want to see how Facebook Inc (NASDAQ:FB) monetizes the Instagram video ads which is pushed to next year; however the timing would impact the stock. The number of Monthly Active Users on Facebook has increased in three consecutive quarters and analysts expect it to increase this quarter too.
Mark Mahaney said that Facebook improvised and took over the mobile ad market while it was not very good in desktop ad monetization. He also said that he prefers Facebook Inc (NASDAQ:FB) however he thinks Google Inc(NASDAQ:GOOGL) is not far behind and is catching up.
Coatue Management is a key investor in Facebook Inc (NASDAQ:FB) and owns about 6.3 million shares as of 31st March 2014. The other key investors in the company are Jat Capital Management and Andor Capital Management with approximately 4.3 million and 2 million shares respectively.