The looming latest quarterly performance reports mean different things for Facebook Inc (NASDAQ:FB) and Yahoo! Inc. (NASDAQ:YHOO), experts tell Melissa Lee in a segment of CNBC’s Market Alert. For the social media giant, it means a possible glimpse of big upsides while for the technology veteran being overrun by its rivals, it is a defining moment which will show the world whether it can survive and thrive.
Facebook Inc (NASDAQ:FB) is set to report its latest quarter’s result tomorrow, April 22nd, while Yahoo! Inc. (NASDAQ:YHOO) will do the same after markets close today, April 21st.
Ed Lee, Re/code managing editor, agrees with Melissa Lee that this earnings report will be crucial for Yahoo! Inc. (NASDAQ:YHOO).
“People are still figuring out what Yahoo is, what it wants to be, what the ambition long-term is going to be. They have a lot of readers. They have a lot of eyeballs. Search is part of their business. Content is part of their business. Email is part of their business. We still don’t know what it is. So until Marissa Mayer the CEO tells us this is the way to go, it is hard to gauge what to bank on,” Ed Lee says.
That sentiment about Yahoo! Inc. (NASDAQ:YHOO) is echoed by earlier comments made by Harry McCracken, Fast Company technology editor, who said that the company will be judged soon after it divests its interests in Alibaba Group Holding Ltd (NYSE:BABA).
Ed Lee notes that Mayer’s company has a lot of cash and it has to use it in some meaningful way. How they will use it, however, still isn’t clear, he says.
Meanwhile, Youssef Squali, Cantor Fitzgerald managing director, told Melissa Lee that his firm sees the most upside in Facebook Inc (NASDAQ:FB).
“[The most upside] won’t be in Yahoo this quarter, let’s put that out there. We think it is probably going to be more on Facebook. It remains out top pick. We think there are a number of that there are a number of things that are helping Facebook both short term and longer term,” Squali tells Lee.
According to the Cantor Fitzgerald director, mobile and video ads will continue to drive Facebook Inc (NASDAQ:FB)’s short term gains while the company is banking on at least three vectors of growth that are not monetized properly. These growth vectors are Instagram, WhatsApp and Messenger, Squali says.
James Dinan’s York Capital owned about 9.4 million Yahoo! Inc. (NASDAQ:YHOO) shares by the end of 2014. The Yahoo shares were added to the York Capital portfolio during the last quarter of last year.
Philippe Laffont’s Coatue Management owned about 7.18 million shares of Facebook Inc (NASDAQ:FB) by the end of the last quarter of 2014.
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