At the close of business on Monday, Facebook was trading at $28.25, a 26% decline since the company’s May IPO, though the stock was up slightly in after-hours trading. The company is expected to report second-quarter sales of $1.16 billion, according to analysts’ estimates compiled by Bloomberg. That compares to revenues of $1.06 billion in the first quarter.
Analysts also expect Facebook to report earnings of 11 cents per share, a figure that has declined 11% over the past four weeks, according to Bloomberg. Facebook is expected to announce its second-quarter earnings on July 26.
Laura Martin, an analyst at Needham & Co. in New York, told Bloomberg that she and other investors will be watching Yahoo’s earnings on Tuesday to get a sense of how the online ad market is doing. “Some of the stock weakness could be in anticipation of weaker earnings,” Martin told Bloomberg, referring to Facebook. “We’ll have a better idea about the picture after Yahoo reports earnings.”
