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.

Just Posted

Case of former MLA facing sex-related charges in court

Former Sylvan Lake-Innisfail MLA Don MacIntyre’s case returns to court on May 3

Central Alberta pharmacists decry fee reductions for services

Government funding cuts to Alberta pharmacies will hurt patient care, said about… Continue reading

Horses left in trailer found in the ditch near Bentley returned to owners, no charges laid

Two horses found in an abandoned trailer near Bentley have been returned… Continue reading

RCMP close intersection where Humboldt Broncos bus, transport truck collided

REGINA — Police have closed the intersection where the team bus for… Continue reading

Supreme Court upholds law in cross-border beer case, averting trade shakeup

OTTAWA — The Supreme Court of Canada has affirmed the constitutionality of… Continue reading

WATCH: Red Deer’s newest public art unveiled

Red Deer’s latest “ghost” sculpture is a love letter to the game… Continue reading

WATCH: This is a story about a stoned raccoon at a fire station

An unusual pair showed up in the pre-dawn hours at Fire Station… Continue reading

Plastic makers’ credit ratings may be hit by pollution rules

Plastic packaging makers may be less credit-worthy in the future as governments… Continue reading

Black Press Media acquires two new Alaska newspapers

New Media Investment Group to acquire the Akron (OH) Beacon Journal while Black Press Media takes on daily newspapers in Juneau and Kenai Alaska

‘Dining of the future’: vegan restaurant boom fuelled by meat eaters

Foodies say Canada is in the midst of a renaissance in plant-based… Continue reading

Northbound QEII traffic to return to northbound lanes as contruction continues south of Red Deer

Though the Hwy 2/Gaetz Avenue interchange still has months until completion, some… Continue reading

Howard commencement to feature “Black Panther” Boseman

WASHINGTON — The “Black Panther” is returning to his alma mater to… Continue reading

Armed police will patrol rail stations at royal wedding

LONDON — British officials say armed and undercover police officers will patrol… Continue reading

Power largely restored across Puerto Rico after blackout

SAN JUAN, Puerto Rico — Puerto Rico’s power company said Thursday that… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month