The Deutsche Bank has great expectations regarding Facebook Inc. (NASDAQ:FB) The expected revenue in the fourth quarter according to Wall Street is approximately $2.1 billion. Results relating to the fourth quarter will be reported on 29th January by Facebook.
Analysts with the bank are certain that Facebook is in a position to beat the consensus. With regards to the previous quarter, the sentiment of the market currently is equalized and may catapult the stock upwards. The analysts estimated that Facebook is above the consensus by more than $100 million. Facebook has for the coming years favourable opportunities, with a shift towards mobile.
Facebook acquired this week Little Eye Labs, a company that makes monitoring and analysis apps for Android phones. Facebook purchased this start up at a price estimated around $15 million. Such an investment will boost Facebook technology with the main focus on revenue obtained from mobile advertising.
Some changes have recently introduced in Facebook Newsfeed. More attention and focus is centred to posts that appear to be performing well. Such a move ensures that that the user is also engaged in a major way. Another change incorporated is the way mid-sized and small businesses are reported within the network. Businesses that do not possess a physical address like e-commerce companies are also featured as they possess active advertising pages within the network. Such businesses have grown in leaps as they now range at 25 million.
Installation of apps on its own will generate $250 million within the four quarter while Instagram on the other hand is expected to generate more than $500 million. The Deutsche bank is awaiting reports from Facebook to announce 25% earnings of approximately $1.46 billion with a tax rate of 40%. The research company behind this analysis also sets the buy rate of the stock to be roughly a target of $61.