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Facebook's (FB) recent augmented reality announcements at F8 and its upcoming first-quarter earnings will be catalysts for investors and should propel the stock higher, as advertising checks continue to be strong.
"A key Facebook marketing partner noted that spending growth on core Facebook in the quarter was strong YoY and was driven by performance advertisers such as e-commerce, retail, and restaurants," Aegis Capital analyst Victor Anthony wrote in a note to investors. "Click through rates were higher YoY, and better ad targeting drove up pricing."
These are trends that have continued in recent quarters, as Facebook, along with Google, continue to dominate the online advertising market, according to research firm eMarketer.
In the fourth-quarter, Facebook earned $1.41 a share on $8.81 billion in revenue, as monthly active users topped 1.86 billion. The company also said that daily active users surpassed 1.23 billion.
In addition to advertising, investors will also want to hear more about Facebook's augmented reality plans which it announced at its F8 developer conference, including plans for "making the camera the first augmented reality platform.”
A compilation of analysts estimates from Nasdaq shows a strong bullish forecast for Facebook over the next few days ahead of the results.
Facebook is expected to earn $1.12 a share and generate $7.82 billion in revenue for the first quarter.
Investors should consider these three ETFs which have high exposure to Facebook if they like what they see from the Mark Zuckerberg-led company.
Social Media Index ETF
Ticker: SOCL
The Social Media Index ETF, which has $88.5 million in assets under management, has 10.13% of its portfolio in Facebook shares. It also charges investors a 0.65% expense fee for managing the assets.
First Trust Dow Jones Internet Index Fund
Ticker: FDN
The First Trust Dow Jones Internet Index Fund, which has $39.4 million in assets under management, has 8.4% of its portfolio in Facebook shares. It also charges investors a 0.57% expense fee for managing the assets.
PowerShares NASDAQ Internet Portfolio ETF
Ticker: PNQI
The PowerShares NASDAQ Internet Portfolio ETF, which has $313.3 million in assets under management, has 8.11% of its portfolio in Facebook shares. It also charges investors a 0.60% expense fee for managing the assets.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
