"Headline acquisitions" and new ways Facebook plans to monetize its massive holdings of user data are key for Andrew Chanin, CEO of PureFunds, which offers ETFs, including a "big data" fund with holdings like Facebook, Twitter, Oracle and Alphabet.
"They are increasing the amount of data they are collecting, and are really just on the cusp of the extracting the value they have," Chanin said. "They were able to develop facial recognition software with Instagram and Facebook pictures — one of the largest databases in the world. You collect the data hoping for value but you don't always know what you are going to be be able to create. ... They may have their best discovery be totally accidental."
Still, while new ventures may provide a path forward for Facebook, they also call for creative cost management. Doshi said he'll be watching how Facebook's margins fare in Wednesday's report.
"As they build out functionality in some of these new services, I'm sure that's going to cost more money," Doshi said. "They've been pretty aggressive as far as hiring as well. And what you have to remember is, Oculus Rift is hardware, and that comes at a lot lower margin."