Facebook is set to announce earnings tomorrow after the closing bell, and intrigue is high particularly following Facebook's miserable quarter in public relations.
From the the Cambridge Analytica data privacy scandal to Zuckerberg's criticized comments on free speech, Facebook has been traveling under a cloud for months. But the question for investors is, will it matter if earnings, revenues, and sales are stronger than expected?
We'll find out tomorrow. If we are to believe Chief Executive Mark Zuckerberg, the myriad of PR issues has not yet impacted the company's top line nor its expected trajectory for earnings. Zuck has said that Facebook would invest heavily in the safety and security of members on the platform, including hiring 20,000 people to fulfill the mission.
The Numbers to Watch on Wednesday:
Consensus analysts see second-quarter earnings falling somewhere between $1.71 and $1.81 a share. On the sales front, estimates have Q2 sales pegged between $13.34 billion and $13.54 billion, the bulk of which should come from mobile ads. A big piece of revenue comes from Facebook's business Instagram, though investors won't know how much Instagram contributes since Facebook does not parse out those numbers.
Should Facebook exceed expectations on earnings and revenue, it seems likely that the stock could pop. Time will tell.