Why People Need To Think About Facebook As A Mobile Company

Facebook Inc FB is set to declare its quarterly earnings results after the bell on Wednesday. Scott Kessler of S&P Capital IQ was on CNBC to discuss what investors should watch out for when Facebook declares its results.

Expectations From Advertising?

"Well, I think it's fair to say that advertising has become more and more important to Facebook over the years and we expect that trend to continue," Kessler said. "What’s really noteworthy is that more and more, Facebook is not just about advertising, but it's about mobile advertising and they've been experiencing doubling of mobile advertising revenues for sometime at this point."

He continued, "We wouldn't be surprised if that trend were to continue. Really to a large extent, people need to think about Facebook as a mobile company and we think the results they put up and the commentary they provide will support and underscore that even more."

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Take On User Growth?

"I think it's fair to say that for Facebook look, I mean, the last time they provided a update on this front they talked about 1.3 billion users," Kessler said. "At this stage, we don't necessarily think that there are a lot of opportunities for Facebook to significantly grow their user base on an overall basis. We do think it makes sense for folks to focus on things like growth in daily active users, growth in the mobile user base and I think increasingly what you are going to see is people also focusing on some of the businesses that they acquired recently."

Kessler continued, "So, Instagram just last month told us that they have 300 million active users; WhatsApp I think has around 700 million and I think one of the questions that people have for the company is, 'Okay, we have seen the significant growth there, how are you thinking about kind of sustaining and accelerating that momentum and then monetizing those gains as well?'"