Facebook Inc Earnings Model (Balafoutas)
Author: John Balafoutas, Published: July 18, 2020 1:30pm, Category: Earnings Preview (Prior to the 2Q2019 earnings release)
Summary of Model: In this model, I detail how the effects of the COVID-19 virus will have an adverse impact on Facebook's upcoming earnings and business model. The two main areas of focus are Facebook's Monthly Active Users and the Average Revenue Per User. Both these values are expected to vary with the aftermath of the COVID-19 virus. Within the model, I detail that although the number of Monthly Active Users may increase, the Average Revenue Per User will decrease. I forecast that this revenue loss due to the decrease in advertisements from many organizations will result in a below-average earnings report. Also, in the model and my report, I outline several additional factors that must be considered when describing the earnings of Facebook in the near future.
Disclosure of Potential Conflicts of Interest: 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.