Facebook: Analysis Of The Company's Financials And Projections Through 2014
By Chuck Jones:Facebook (FB) has started its IPO roadshow with a target date of Friday, May 18, as the first day of trading. I have taken the financial numbers from its latest S-1 filing and built a revenue and earnings model through 2014. I am backing out stock expenses since I believe the Street will remove these costs to get a better view of Facebook's operating results.It can be difficult to project revenue and earnings one to two quarters in the future for mature companies so it is even harder to estimate results for new, quickly growing companies over a two to three year time frame.I have summarized some of the key observations of the company's financial results and built three models through 2014. There is a base case using recent trend data, one that has revenue growth and margins improving vs. the previous few quarters and lastly one whereComplete Story »
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