Pranshu Suri's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Bullish
Model Description: Despite the great uncertainty in the macroeconomic environment in which Facebook sits, the company has weathered the events of the past few months with over $60B in cash, cash equivalents, and marketable securities on its balance sheet at the end of quarter 1. Facebook’s capital structure is not highly levered at all, unlike other companies who have fallen victim to the unyielding economic conditions of many countries during the COVID-19 pandemic. This is not to say that Facebook will persist unscathed with everything going on in the world. In the second and coming quarters, this model forecasts that Facebook’s margins will go down, expenses will go up, monthly active users will go up, and average revenue per user will go down (all of which will subsequently stabilize into 2021) due to many factors...click here to continue reading
View: Bullish
Model Description: Despite the great uncertainty in the macroeconomic environment in which Facebook sits, the company has weathered the events of the past few months with over $60B in cash, cash equivalents, and marketable securities on its balance sheet at the end of quarter 1. Facebook’s capital structure is not highly levered at all, unlike other companies who have fallen victim to the unyielding economic conditions of many countries during the COVID-19 pandemic. This is not to say that Facebook will persist unscathed with everything going on in the world. In the second and coming quarters, this model forecasts that Facebook’s margins will go down, expenses will go up, monthly active users will go up, and average revenue per user will go down (all of which will subsequently stabilize into 2021) due to many factors...click here to continue reading
| FB Earnings Model (Pranshu Suri).xlsx |
Pranshu is a rising junior at the University of Pennsylvania pursuing dual degrees in Economics (Finance) and Bioengineering in the Jerome Fisher Program in Management and Technology. Her passions lie at the nexus of finance, health-tech, and solving problems. In her free time, Pranshu enjoys writing (creatively), reading about failing startups, and solving problems. Feel free to reach out to her at psuri@wharton.upenn.edu with any questions about her earnings model, or just to chat about business/tech/life!
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.