Wall Street is predicting a good showing from Facebook on Wednesday when it reports financial results for the fourth quarter of 2012, and the full year.
Investor sentiment towards Facebook appears to have shifted towards a cautious optimism in the last quarter, with the company’s stock price rising back above $30 for the first time since its initial public offering in May, when shares were priced at $38, then quickly fell below $20.
Brian Wieser of Pivotal Research Group predicts the stock will pop after the next couple of earnings reports, then “come back to earth” as the market better understands the company.
This quarter, Facebook’s revenues will reflect advertising purchases related to the November presidential election and the holiday shopping season. Analysts are expecting the social network to report earnings per share of 15 cents on $1.53bn of revenue. For the full year, estimates average at 52 cents earnings per share on $5.03bn in revenue.