Abhay Ram's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Bearish
Model Description: I have a very bearish approach of Facebook for the second quarter of 2020. This is because revenue is estimated to decrease by a significant portion as companies already started reducing advertising expenses and the ad boycott happened towards the end of the second quarter. Although the ad boycott did happen, it should not affect the earnings as much as it will show its effects in the third quarter. Operating expenses would likely remain the same however, gross margin will decrease bringing the EPS down. We will see the effects of the ad boycott worldwide.
View: Bearish
Model Description: I have a very bearish approach of Facebook for the second quarter of 2020. This is because revenue is estimated to decrease by a significant portion as companies already started reducing advertising expenses and the ad boycott happened towards the end of the second quarter. Although the ad boycott did happen, it should not affect the earnings as much as it will show its effects in the third quarter. Operating expenses would likely remain the same however, gross margin will decrease bringing the EPS down. We will see the effects of the ad boycott worldwide.
| FB Earnings Model (Abhay Ram).xlsx |
Abhay is a rising sophomore at the Rutgers Business School- New Brunswick double majoring in Finance and Business Analytics & Information Technology (BAIT). Abhay's current interests within the field are valuing global financial stocks using novel approaches, active versus passive investing techniques, and how macroeconomic policy impacts equity markets. He also has an interest in learning and creating algorithmic trading codes that can help improve investment decisions. He plans to pursue a career in Equity Research upon graduation.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.
Disclosure: The author of this article/model has no financial investment or other conflict of interest related to the subject company or other companies discussed. Any views made or implied in the content represent the author’s opinions.