Mansoor Tariq Khan's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Neutral
Model Description: For the Q2 2020 and onwards for the year 2020, I forecast Facebook’s financial performance and as a result the stock price to be slightly bullish on a YoY basis while taking a small loss in revenue on a QoQ basis. The forecasted revenue for Q2 is $17.5B with a Diluted EPS of $1.43. My estimates are based on the following factors that I see affecting Facebook’s performance positively or negatively. Firstly, Monthly Active Users (MAU’s) across all regions except Asia-Pacific would see a lower positive growth in Q2 as compared to the spike seen in growth during Q1. Due to Facebook’s partnership with Jio in India to facilitate e-commerce activities for SMB’s and China’s increased activity in both the e-commerce and gaming sector, I forecast the MAU’s to grow by 13% as compared to the 11% growth in the first quarter in the Asia-Pacific region. The general positive growth in MAU’s for all the regions can also be attributed to the shelter-in restrictions placed due to COVID-19, allowing more people to use Facebook and its other social media platforms, WhatsApp and Instagram. As the social distancing SOP’s get relaxed, we see the MAU’s growth returning to their average rates seen in 2019...click here to continue reading
View: Neutral
Model Description: For the Q2 2020 and onwards for the year 2020, I forecast Facebook’s financial performance and as a result the stock price to be slightly bullish on a YoY basis while taking a small loss in revenue on a QoQ basis. The forecasted revenue for Q2 is $17.5B with a Diluted EPS of $1.43. My estimates are based on the following factors that I see affecting Facebook’s performance positively or negatively. Firstly, Monthly Active Users (MAU’s) across all regions except Asia-Pacific would see a lower positive growth in Q2 as compared to the spike seen in growth during Q1. Due to Facebook’s partnership with Jio in India to facilitate e-commerce activities for SMB’s and China’s increased activity in both the e-commerce and gaming sector, I forecast the MAU’s to grow by 13% as compared to the 11% growth in the first quarter in the Asia-Pacific region. The general positive growth in MAU’s for all the regions can also be attributed to the shelter-in restrictions placed due to COVID-19, allowing more people to use Facebook and its other social media platforms, WhatsApp and Instagram. As the social distancing SOP’s get relaxed, we see the MAU’s growth returning to their average rates seen in 2019...click here to continue reading
| FB Earnings Model (Mansoor Tariq Khan).xlsx |
Mansoor Tariq Khan is a rising sophomore at Rutgers Business School, double majoring in Finance and Business Analytics Information Technology (BAIT). He aspires to make a career in the Financial Services industry and is active with various student clubs at his school namely the Little Investment Bankers of Rutgers (LIBOR), Rutgers Finance Society, Team-UP mentoring program, and more.
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.