Facebook Crush Earnings Expectations

Mark Zuckerberg will tell investors Wednesday if Facebook’s (FB) impressive growth continued in the second quarter, or whether SnapChat and other forces are slowing the social media giant.

Wall Street expects the company to generate earnings of 81 cents per share from just more than $6 billion in sales, according to FactSet.

Video is also likely to be a point of emphasis.

“Zuckerberg says we are at the beginning of the golden age of online video,” Jefferies analyst Brian Pitz wrote in an earnings preview on Monday, noting that live videos generate 10 times as many comments as regular videos.

While video is promising, Pitz cautioned that millennials are increasingly connecting on Snapchat. “Given that engagement is the key ingredient to [Facebook]’s recipe for success, any engagement declines should be viewed with caution,” the analyst wrote.

Wall Street expects the company to generate earnings of 81 cents per share from just more than $6 billion in sales, according to FactSet.

“Mobile has been the main driver of growth to date,” Cantor Fitzgerald analyst Youssef Squali wrote in an earnings preview. Video and Instagram will begin to “move the needle” in the second half of the year, he wrote, while Messenger, WhatsApp and virtual reality offering Oculus provide longer-term opportunities.

TheStreet’s Jim Cramer, who owns Facebook in his Action Alerts PLUS Charitable Trust Portfolio, said he is concerned that confidence in Facebook has gotten “a little too high,” but noted that large companies like Coca-Cola  (KO) are advertising on Facebook.