While Facebook 's second-quarter results were better than analysts were expecting, the stock is down about 7% since the company reported results. The decline occurred along with a general pullback for most high-growth stocks during this period. Could the social network's third-quarter results help moderate the negative pressure on the stock and boost investor confidence in the company?
Another key metric to watch is the engagement of Facebook's users, defined by the percentage of daily active users by total monthly active users. This gives investors insight into whether the social network's users are staying as engaged.
Recently, Facebook's engagement rate has leveled off. During Q2, Facebook reported an engagement rate of about 65%, in line with user engagement during the prior quarter. Has the social network been able to continue to maintain its 65% engagement rate in Q3?
Facebook will report third-quarter results after market close on Nov. 4. Following the report, the company will host a live earnings call at 5:00 p.m. EST.
Beyond revenue, EPS, users, and engagement, investors should check in on other important items such as advertising revenue growth and Facebook's progress on its developing businesses, such as Messenger, Groups, Instagram, and WhatsApp.
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The article Mark Your Calendar: Facebook Inc.'s Q3 Earnings originally appeared on Fool.com.
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