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Facebook 4Q Profit Preview



Taking up the concept from Snap, which introduced Stories in 2013, started its competitive version three years later. Facebook started with Stories launching on Instagram and has since added it to its main app Messenger and WhatsApp. Stories can focus on a photo of something your cousin sees on the street or a friend's video with animated puppy ears.

Although this feature has proven to be particularly popular with Instagram, it is still unclear how much traction it has gained in other Facebook apps. Zuckerberg has warned that the transition from feed to stories may be slow, telling analysts that "from a business point of view, most of our feed will grow in the next few years, at least until the stories become even bigger."

Maria Ripps, an analyst at Canaccord Genuity, said investors need to check if the stories are a "supplement to major news feeds" or if it takes money from the main product.

"Any color around it will be the most important issue in this quarter," said Ripps. Canaccord is a "buy" rating for Facebook and a $ 180 price target.

Currently, Facebook continues to lure advertisers who are unable to get an audience that their social network provides anywhere else.

"Facebook can be intrusive and sell your stuff," said Kim Forrest, a cash manager at Fort Pitt Capital Group, which owns approximately 2,300 Facebook shares. "But apparently it works for advertisers."

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