Smay Shah's Contributor Page
Last Updated: July 26, 2020 (Prior to the 2Q2020 earnings release).
View: Bullish
Model Description: This forecast model presents my bullish view on Facebook. Although the immediate future poses certain hurdles for the company, such as ad spending boycotts and an upcoming antitrust hearing, Facebook's long-term horizon seems promising. Primarily, I expect Facebook to see a rising growth rate in Monthly Active Users (MAU) and Average Revenue Per User (ARPU) in many of its developing country markets. This will only be fueled as Facebook recently invested $5 billion in JIO, an Indian telecommunications company, and saw COVID-19 increase the demand for its services. Additionally, Facebook is in the process of rolling out its own Tik Tok competition, Instagram Reels, which in the potential ban of Tik Tok in the US could see the rise of a new social media sensation. All this is above and beyond the general success around its Facebook Shops and consistent growth recently. Of course, this is not to undermine Facebook's recent woes. It is far from smooth sailing here out; first, Facebook must find its way out of the political mess it has found itself without alienating its users, surviving the antitrust hearings, and other unforeseen obstacles. But afterward, it is hard not to picture clear skies for Facebook from here on out.
View: Bullish
Model Description: This forecast model presents my bullish view on Facebook. Although the immediate future poses certain hurdles for the company, such as ad spending boycotts and an upcoming antitrust hearing, Facebook's long-term horizon seems promising. Primarily, I expect Facebook to see a rising growth rate in Monthly Active Users (MAU) and Average Revenue Per User (ARPU) in many of its developing country markets. This will only be fueled as Facebook recently invested $5 billion in JIO, an Indian telecommunications company, and saw COVID-19 increase the demand for its services. Additionally, Facebook is in the process of rolling out its own Tik Tok competition, Instagram Reels, which in the potential ban of Tik Tok in the US could see the rise of a new social media sensation. All this is above and beyond the general success around its Facebook Shops and consistent growth recently. Of course, this is not to undermine Facebook's recent woes. It is far from smooth sailing here out; first, Facebook must find its way out of the political mess it has found itself without alienating its users, surviving the antitrust hearings, and other unforeseen obstacles. But afterward, it is hard not to picture clear skies for Facebook from here on out.
| FB Earnings Model (Smay Shah).xlsx |
Smay is a rising sophomore at the Rutgers Business School Honors College in New Brunswick. Smay is studying a double major in Finance and Economics, and he also plans to pursue a minor in Computer Science. Smay's passion exists at the intersection of finance and business strategy, where he loves to break down, analyze, and understand businesses, using his analyses to try and model and predict a company's future growth. Born and raised in New Jersey, Smay currently resides in Hillsborough. In his free time, Smay enjoys the casual game of basketball or spikeball, his favorite player being Lebron James. Looking ahead, Smay hopes to continue expanding his horizon and learning more about the world of Finance.
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.