Facebook (FB) Zynga (ZNGA) Still Figuring It Out
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Social media juggernaut Facebook (Nasdaq: FB) is expected to announce earnings today after the bell, and investors shell shocked by the company's last earnings report, not to mention its IPO, are ready to hit the panic button on the slightest hint of bad news.
Facebook is under intense pressure from investors to prove it can make the transition to mobile, generate revenue, and still grow users. This is not an easy to-do list by any stretch, especially, some say, with youngster Mark Zuckerberg at the helm.
Investors also have Zynga's (Nasdaq: ZNGA) feet to the fire. ZNGA stock has collapsed 84 percent since March and, despite the dirt cheap valuation, critics are merciless.
Zynga's latest venture involves the development of its own advertising platform. This is an attempt by Zynga to earn revenue, and might be seen as a little desperate. It is a gaming company after all, and virtual goods as its main source of revenue. While few investors will complain about additional income, but what Zynga needs, more than advertising dollars are hit games.
Facebook, meanwhile, is attempting to drum up its own sources of revenue. There are plenty of ideas, including off-site advertising and more banner ads, but what is clear is that neither company really has it figured out, and frankly there is no proof yet that they ever will.
Facebook will get their chance today to silence critics, but few are holding their breath.
Analysts on average are looking for EPS of $0.11 and revenues of $1.23 billion.
Facebook is under intense pressure from investors to prove it can make the transition to mobile, generate revenue, and still grow users. This is not an easy to-do list by any stretch, especially, some say, with youngster Mark Zuckerberg at the helm.
Investors also have Zynga's (Nasdaq: ZNGA) feet to the fire. ZNGA stock has collapsed 84 percent since March and, despite the dirt cheap valuation, critics are merciless.
Zynga's latest venture involves the development of its own advertising platform. This is an attempt by Zynga to earn revenue, and might be seen as a little desperate. It is a gaming company after all, and virtual goods as its main source of revenue. While few investors will complain about additional income, but what Zynga needs, more than advertising dollars are hit games.
Facebook, meanwhile, is attempting to drum up its own sources of revenue. There are plenty of ideas, including off-site advertising and more banner ads, but what is clear is that neither company really has it figured out, and frankly there is no proof yet that they ever will.
Facebook will get their chance today to silence critics, but few are holding their breath.
Analysts on average are looking for EPS of $0.11 and revenues of $1.23 billion.
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