Facebook’s day of reckoning coming with Q2 report

It’s showtime for Facebook. Call it the second act after its rocky initial public offering two months ago. On Thursday, the company will take the spotlight once again for its first earnings report as a public company.

NEW YORK — It’s showtime for Facebook. Call it the second act after its rocky initial public offering two months ago. On Thursday, the company will take the spotlight once again for its first earnings report as a public company.

Facebook’s fate hinges on its ability to convince businesses that the ads on its website and on its mobile application are effective. To do that, the world’s largest online social network needs to keep its nearly 1 billion users logging on as often — and for as long — as possible, interacting with each other as well as with brands.

The release of its quarterly financial results will be Facebook’s chance to prove to investors that it can continue growing revenue from the ads it serves on its popular social networking site.

It comes a day after Zynga Inc., which contributed to 12 per cent of Facebook’s revenue last year, reported disappointing earnings. Facebook’s stock slid in after-market trading Wednesday, as did Zynga’s.

Though there’s a lot riding on Facebook’s second-quarter earnings report, Wall Street analysts aren’t expecting big surprises.

Why? Facebook effectively warned investors before its IPO that Wall Street’s expectations were too high. In a filing issued a week before its IPO, Facebook said its mobile users are growing at a faster pace than the number of ads on its mobile platform.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Red Deer churches easing back into services

“To be able to do that again was just incredible”

Sylvan Lake man charged with child luring

A 38-year-old Sylvan Lake man has been charged with child luring. Sylvan… Continue reading

Spike in bike thefts prompts Red Deer RCMP warning

Nearly a dozen bikes reported stolen in Red Deer in last week

If an MP heckles in a virtual House of Commons, does it make a sound?

If an MP heckles in a virtual House of Commons, does it make a sound?

How much will be enough when it comes to Canada’s COVID-19 supply?

How much will be enough when it comes to Canada’s COVID-19 supply?

Twenty-nine of Canada’s 48 national parks to reopen to day-use visitors in early June

Twenty-nine of Canada’s 48 national parks to reopen to day-use visitors in early June

Advocates push Ottawa to fix long-term problems with long-term care

Advocates push Ottawa to fix long-term problems with long-term care

COVID-19 shows need for long-term-care reform but solve crisis first, Trudeau says

COVID-19 shows need for long-term-care reform but solve crisis first, Trudeau says

Alberta premier says targeted approach needed to prevent COVID-19 resurgence

Alberta premier says targeted approach needed to prevent COVID-19 resurgence

Military has located wreckage of helicopter and remains in Mediterranean

Military has located wreckage of helicopter and remains in Mediterranean

Five things to know about the Meng Wanzhou extradition case

Five things to know about the Meng Wanzhou extradition case

Most Read