Facebook earnings: What to look for

In April this year, social networking giant Facebook (FB) delivered a breakthrough first-quarter earnings. Obviously, the stock zoomed.

Now the question is, will the second quarter bring more of the same? Facebook is scheduled to report second-quarter earnings after the market closes today. Here's what you should watch out for. 

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Investors are keeping an eye on user growth and financial performance of Facebook, a $347-billion company that's bigger than Johnson & Johnson, AT&T and General Electric. Facebook clearly owns the ad share space, driven by its user scale.

Facebook has managed to develop strong engagement and brought relevant ads. Ad revenue growth has been driven largely by Mobile, Video and Instagram.

With Instagram now topping half a billion users and Facebook Messenger reaching 1 billion active users, the company has positioned itself as a massive media conglomerate. It's positioned to be among the sturdy companies that withstand the financial stocks that probably lie ahead.

Remember, WhatsApp has already crossed the 1-billion mark. Video has also seen solid consumption, with more videos being seen on Facebook than even on Alphabet's YouTube.

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However, there are a few challenges. There are already fears floating around that Instagram lost users to Pokémon Go from Nintendo and Snapchat is stealing some Facebook users slowly (though some believe that the fear has been overblown).