We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Facebook's (FB) E-commerce Push Benefit Q2 Earnings?
Read MoreHide Full Article
Facebook is set to report second-quarter 2020 results on Jul 29.
The company’s e-commerce push is expected to grab limelight in the to-be-reported quarter. Ad sales are expected to have struggled due to the coronavirus-related headwinds and weakness in the travel and automotive industries.
It introduced Facebook Shop — a free service that makes it easy for businesses to set up a single online store to be availed by customers on both Facebook and Instagram.
Facebook Shop will be powered by third-party services, including Shopify (SHOP - Free Report) , BigCommerce, and Woo.
Markedly, the coronavirus pandemic has hit small and medium-sized businesses hard. Hence, the company’s new free service is expected to have gained adoption in the second quarter.
Facebook also introduced Businesses Nearby that allows users to see the latest posts from businesses within a certain geographic radius.
The company’s focus on bringing more local businesses online is expected to boost its competitive footprint against the likes of Etsy (ETSY - Free Report) and Amazon (AMZN - Free Report) .
Click here to know how the company’s overall second-quarter performance is likely to be.
Jio Investment to Expand Facebook’s India Footprint
Facebook also announced an investment of $5.7 billion to buy a 10% stake in Jio Platforms Limited, the digital arm of Reliance Industries.
The move is expected to bring together Facebook’s WhatsApp with JioMart, a joint venture between Jio and Reliance Retail to enable people to connect with businesses.
The deal is expected to have helped Facebook expand its presence in India, the company’s largest market in terms of subscriber base.
In fact, Facebook is expected to benefit from growing subscriber base in Asia Pacific. The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s second-quarter Asia-PacificDaily Active Users is pegged at 685 million, indicating a rise of 11.4% from the year-ago quarter reported figure.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Augmented Reality (AR) Focus to Aid Top Line
Facebook is gaining on AR camera effects on Messenger that helps brands to gain traction across customers. Further, AR Studio on Instagram enables users to create new face masks and AR-world effects. Additionally, AR-based ads on Facebook platforms are contributing to ad revenues.
Further, its strengthening focus on 6DOF devices—Oculus Quest and Rift headsets, remain noteworthy. Notably, 6DOF headsets can track orientation and position. Moreover, progress on Oculus Quest is likely to aid the company in making consumer-ready AR glasses.
Late second-quarter, Facebook announced that it will cease selling entry-level Oculus Go Virtual Reality headset it launched in 2018. Markedly, the $399 priced Oculus Quest headset, which Facebook launched in 2019, has gained significant traction thanks to amazing games like Beat Saber, Dance Central and The Climb.
Moreover, acquisitions have played an important role in deciding Facebook’s growth trajectory in the virtual reality as well as AR space.
The company also acquired computer vision startup Scape Technologies in a move to build out its AR capabilities. Scape has reportedly built a localization engine that’s designed for city-scale AR. Using a cloud-based Visual Engine, the technology can build and reference 3D maps in the cloud, allowing devices to tap into a unified perception of the world around them.
Notably, higher sales of Oculus products drove Payments and other fees, which surged 80% year over year to $297 million in first-quarter 2020. The consensus mark for Payments and other fees is pegged at $328 million, suggesting growth of 25.2% from the figure reported in the year-ago quarter.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Will Facebook's (FB) E-commerce Push Benefit Q2 Earnings?
Facebook is set to report second-quarter 2020 results on Jul 29.
The company’s e-commerce push is expected to grab limelight in the to-be-reported quarter. Ad sales are expected to have struggled due to the coronavirus-related headwinds and weakness in the travel and automotive industries.
It introduced Facebook Shop — a free service that makes it easy for businesses to set up a single online store to be availed by customers on both Facebook and Instagram.
Facebook Shop will be powered by third-party services, including Shopify (SHOP - Free Report) , BigCommerce, and Woo.
Markedly, the coronavirus pandemic has hit small and medium-sized businesses hard. Hence, the company’s new free service is expected to have gained adoption in the second quarter.
Facebook, Inc. Revenue (TTM)
Facebook, Inc. revenue-ttm | Facebook, Inc. Quote
Facebook also introduced Businesses Nearby that allows users to see the latest posts from businesses within a certain geographic radius.
The company’s focus on bringing more local businesses online is expected to boost its competitive footprint against the likes of Etsy (ETSY - Free Report) and Amazon (AMZN - Free Report) .
Click here to know how the company’s overall second-quarter performance is likely to be.
Jio Investment to Expand Facebook’s India Footprint
Facebook also announced an investment of $5.7 billion to buy a 10% stake in Jio Platforms Limited, the digital arm of Reliance Industries.
The move is expected to bring together Facebook’s WhatsApp with JioMart, a joint venture between Jio and Reliance Retail to enable people to connect with businesses.
The deal is expected to have helped Facebook expand its presence in India, the company’s largest market in terms of subscriber base.
In fact, Facebook is expected to benefit from growing subscriber base in Asia Pacific. The Zacks Consensus Estimate for this Zacks Rank #3 (Hold) company’s second-quarter Asia-PacificDaily Active Users is pegged at 685 million, indicating a rise of 11.4% from the year-ago quarter reported figure.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Augmented Reality (AR) Focus to Aid Top Line
Facebook is gaining on AR camera effects on Messenger that helps brands to gain traction across customers. Further, AR Studio on Instagram enables users to create new face masks and AR-world effects. Additionally, AR-based ads on Facebook platforms are contributing to ad revenues.
Further, its strengthening focus on 6DOF devices—Oculus Quest and Rift headsets, remain noteworthy. Notably, 6DOF headsets can track orientation and position. Moreover, progress on Oculus Quest is likely to aid the company in making consumer-ready AR glasses.
Late second-quarter, Facebook announced that it will cease selling entry-level Oculus Go Virtual Reality headset it launched in 2018. Markedly, the $399 priced Oculus Quest headset, which Facebook launched in 2019, has gained significant traction thanks to amazing games like Beat Saber, Dance Central and The Climb.
Moreover, acquisitions have played an important role in deciding Facebook’s growth trajectory in the virtual reality as well as AR space.
The company also acquired computer vision startup Scape Technologies in a move to build out its AR capabilities. Scape has reportedly built a localization engine that’s designed for city-scale AR. Using a cloud-based Visual Engine, the technology can build and reference 3D maps in the cloud, allowing devices to tap into a unified perception of the world around them.
Notably, higher sales of Oculus products drove Payments and other fees, which surged 80% year over year to $297 million in first-quarter 2020. The consensus mark for Payments and other fees is pegged at $328 million, suggesting growth of 25.2% from the figure reported in the year-ago quarter.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>