According to a Reuters report, the key to Facebook retaining the love of Wall Street would be mobile advertising. The social media company had already gained the favor of its investors back in the second quarter. Now, the world's number one online social networking site would have to maintain its growth. Facebook's bungled initial public offering reportedly caused the firm's share price to suffer for over one year.
Monetta Fund Portfolio Manager Bob Bacarella told Reuters, "They've got to prove to investors that they can continue with the growth they demonstrated from the last quarter. From the way the stock is priced today, the expectations are generally that they will beat or exceed numbers handily." Monetta Fund has shares in Facebook.
Analysts had estimated that Facebook would grow its mobile revenue anywhere from USD 760 million to USD 840 million. However, some investors were hoping for larger figures.
Macquarie Research Analyst Ben Schachter told Reuters, "What I've been telling folks is that, in general, $850 million-plus is the number that's needed, maybe even $900 million-plus."
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