Facebook's earnings: It's all about mobile

(Credit: James Martin/CNET)

All eyes are again on Facebook as it prepares to report fourth-quarter earnings, a make-or-break event that will determine whether the social network can continue its remarkable recovery from a stock market coma induced by a disastrous initial public offering.

Facebook, Wall Street's one-time punching bag, went from zero to hero with its share price swelling more than 60 percent from $19 and change to more than $31 in the past three months. Even an investor-disappointing Graph Search announcement did little to sway the social network's upward momentum. Today, Facebook, while still below its IPO offer price of $38, looks surprisingly healthy at $31.54.

So what happens now? Wall Street's consensus is that the social network will report $1.52 billion in revenue and earnings per share of $0.15. Should Facebook miss or clobber the top line number, the stock will move, but more is at stake. Facebook needs to show that its milking more money from its growing mobile audience, that other cash-making strategies are truly working and, above all, keep the Street convinced that its business is on the right track.

Zero to hero in 90 days Toward the end of October,... [Read more]





by Jennifer Van Grove via CNET