Marc Vitenzon's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Neutral
Model Description: For fiscal quarter 2 in year 2020, a minor earnings beat of the consensus estimate for Facebook's EPS is expected. This expectation is largely driven by the assumption of smaller quarter-over-quarter (QoQ) drop-offs in average-revenue-per-user (ARPU), specifically in the U.S. and Canada, during the pandemic. ARPU in U.S. and Canada is projected to continue to marginally increase in Q2 and Q3 as a result of further expected fiscal stimulus and heightened user engagement as other forms of entertainment remain limited while social tensions are elevated. This means that this region should feel a negative impact when it comes to ARPU once fiscal stimulus begin to dry-up. However, this impact should be mitigated by revenues stemming from other regions which are expected to have had the pandemic under control for longer...click here to continue reading
View: Neutral
Model Description: For fiscal quarter 2 in year 2020, a minor earnings beat of the consensus estimate for Facebook's EPS is expected. This expectation is largely driven by the assumption of smaller quarter-over-quarter (QoQ) drop-offs in average-revenue-per-user (ARPU), specifically in the U.S. and Canada, during the pandemic. ARPU in U.S. and Canada is projected to continue to marginally increase in Q2 and Q3 as a result of further expected fiscal stimulus and heightened user engagement as other forms of entertainment remain limited while social tensions are elevated. This means that this region should feel a negative impact when it comes to ARPU once fiscal stimulus begin to dry-up. However, this impact should be mitigated by revenues stemming from other regions which are expected to have had the pandemic under control for longer...click here to continue reading
| FB Earnings Model (Marc Vitenzon).xlsx |
I am a rising Junior at the Stevens Institute of Technology, majoring in Quantitative Finance. I have a passion for equity research and the credit markets. My financial analysis skills are complemented with data analytics and computer science knowledge.
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.