Can Facebook Sustain Upbeat Earnings Report?

After a year of incredible growth in 2016, Facebook may raise the bar once again this year.The social network giant is expected to announce that first-quarter earnings this May 3 and the pressure is on after the 20 percent stock rally in the preceding year. 

The most recent quarter of Facebook was totally a blast. It was Facebook’s sixth successive quarter of mounting revenues and earnings. As reported the revenue grew impeccably by 51% year over year. 

Though Facebook is not expecting to make such growth in the first quarter of 2017, analysts are still being optimistic for a year-over-year revenue growth of roughly 45%. Mobile and live video efforts are contributing big time to the success of the social media giant. 

CEO Mark Zuckerberg is accentuating the need to bring more video content to the platform. One of its strengths is investing in novel and innovative content.

According to Zacks Investment Research, the social media juggernaut received a consensus EPS forecast of $0.88, higher than the $0.57 estimates for the same quarter last year.

Further, Facebook will continue to enlarge its investments this year, which in turn will mean an increase in its costs. One of its awaiting plans is the use of stricter measures such as a photo-matching technology to prevent the spread of revenge porn pictures by means of re-sharing it. Facebook is serious to employ a stricter process to help thwart the spread of nude and sexually explicit images. 

The company plans to add people on its team like engineers and toting up a team dedicated to review the photos and disable the accounts of people who will be involved with such prohibited actions. Another addition to the company’s cost. 

Aside from concentrating on its revenues and earnings, Facebook is concerned with helping people safe while using the platform. Antigone Davis, Facebook’s Head of Safety, even stated, “Facebook is in a unique position to prevent harm.” Campaigners calling for Facebook’s attention have appreciated the development. Besides, even the founder of the UK’s Revenge Porn Helpline, Laura Higgins, said that, “It’s a huge step forward.”

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