Rohit Kusupudi's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Bullish
Model Description: In this model, I detail how the effects of Covid-19 as well other factors affect the performance of Facebook. The two main parts of the model are Facebook's monthly active users and average revenue per user. These values are expected to be affected by the ongoing Covid-19 pandemic. In my forecast, I predict that monthly active users will continue to increase as the world continues to feel the effects of this pandemic. I think this pandemic will not end until a vaccine is successful. This will lead to a growth in facebook users as social distancing and quarantine measures persist. Average revenue per user growth has slowed down for facebook due to less companies wanting advertisements (due to struggles from the pandemic) as well as the more political Facebook advertisement boycotts. I predict that although average revenue per user growth will slow down initially, it will pick back up again as businesses continue to reopen. Although the pandemic will be ongoing, many businesses will continue to open(while practicing certain safety measures) and will need to advertise to regain momentum. I also think that the facebook advertising boycotts are a short term event and will fade out in the future. Furthermore, this pandemic has highlighted the importance and strength of technology in general. As the pandemic slowly gets solved, the technology sector in general will continue to experience substantial growth even as everyday life gradually returns to normal.
Due to these opinions, I forecast that Facebook will experience revenue growth this quarter as well as long term growth for the future.
View: Bullish
Model Description: In this model, I detail how the effects of Covid-19 as well other factors affect the performance of Facebook. The two main parts of the model are Facebook's monthly active users and average revenue per user. These values are expected to be affected by the ongoing Covid-19 pandemic. In my forecast, I predict that monthly active users will continue to increase as the world continues to feel the effects of this pandemic. I think this pandemic will not end until a vaccine is successful. This will lead to a growth in facebook users as social distancing and quarantine measures persist. Average revenue per user growth has slowed down for facebook due to less companies wanting advertisements (due to struggles from the pandemic) as well as the more political Facebook advertisement boycotts. I predict that although average revenue per user growth will slow down initially, it will pick back up again as businesses continue to reopen. Although the pandemic will be ongoing, many businesses will continue to open(while practicing certain safety measures) and will need to advertise to regain momentum. I also think that the facebook advertising boycotts are a short term event and will fade out in the future. Furthermore, this pandemic has highlighted the importance and strength of technology in general. As the pandemic slowly gets solved, the technology sector in general will continue to experience substantial growth even as everyday life gradually returns to normal.
Due to these opinions, I forecast that Facebook will experience revenue growth this quarter as well as long term growth for the future.
| FB Earnings Model (Rohit Kusupudi).xlsx |
Hello! My name is Rohit Kusupudi and I am from Hopewell, New Jersey. I am currently a rising sophomore at Rutgers Business School intending to study finance, mathematics, and business analytics. My goal after college is to work on Wall Street in sales and trading. My hobbies include fitness, travel, basketball, volleyball, and investing.
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.