Rajas Chordiya's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Bullish
Model Description: In this earnings model, I have forecasted my bullish future expectations of Facebook’s performance for the remainder of 2020 and all of 2021. One of the most significant factors impacting the business currently is COVID-19. We have seen that the pandemic has led to a substantial increase in the number of monthly active users (MAU) worldwide, and I believe that this trend will continue for the foreseeable future (at least for the remainder of 2020), as people will likely continue to work from home and spend more time online. It is important to note that the growth rate for the average revenue per user (ARPU) has declined, and the antitrust and boycotting issues serve as headwinds for the company. Despite this, I believe that the significant increase in MAU may offset, and perhaps outweigh the obstacles Facebook is dealing with. Also, Facebook has been making efforts to expand its platforms globally, which is a good sign. They have recently invested over $5 billion in Jio, a telecom company in India, and they are soon to launch Instagram Reels as a competitor to the widely used app, Tik Tok. Overall, I have an optimistic view of Facebook, and despite some of the current obstacles, I believe the company will continue to grow, being the strong, global company that it is.
View: Bullish
Model Description: In this earnings model, I have forecasted my bullish future expectations of Facebook’s performance for the remainder of 2020 and all of 2021. One of the most significant factors impacting the business currently is COVID-19. We have seen that the pandemic has led to a substantial increase in the number of monthly active users (MAU) worldwide, and I believe that this trend will continue for the foreseeable future (at least for the remainder of 2020), as people will likely continue to work from home and spend more time online. It is important to note that the growth rate for the average revenue per user (ARPU) has declined, and the antitrust and boycotting issues serve as headwinds for the company. Despite this, I believe that the significant increase in MAU may offset, and perhaps outweigh the obstacles Facebook is dealing with. Also, Facebook has been making efforts to expand its platforms globally, which is a good sign. They have recently invested over $5 billion in Jio, a telecom company in India, and they are soon to launch Instagram Reels as a competitor to the widely used app, Tik Tok. Overall, I have an optimistic view of Facebook, and despite some of the current obstacles, I believe the company will continue to grow, being the strong, global company that it is.
| FB Earnings Model (Rajas Chordiya).xlsx |
Rajas is a business student in the Honors College at Rutgers University studying finance, mathematics, and economics. Currently (as of July 2020), he is an investment analyst intern at the search fund Anodize Capital Partners and is also a consulting analyst at the Rutgers Consulting Group. On campus, Rajas is an active member of the Rutgers Road To Wall Street program, Little Investment Bankers of Rutgers (LIBOR), the Rutgers Actuarial Club, and many other organizations.
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.