*By Amanda Weston* Facebook doesn't report its latest earnings until Tuesday, but some analysts are already predicting a drop in the numbers amid security concerns and waning popularity among the platform's younger users. Chris Versace, chief investment officer at Tematica Research, predicted on Cheddar Monday that its quarterly earnings report will put Facebook ($FB) at $1.47 per share, down from $1.59 last year. Tuesday's earnings will follow a slew of [critical headlines](https://www.marketwatch.com/story/facebook-earnings-as-facebook-is-called-digital-tobacco-advertisers-loyalty-is-biggest-question-2018-10-27) including hacks affecting millions of users and the rampant spread of misinformation on the platform. Versace said ramping up security has been a "huge driver" for Facebook ($FB). "There is even some speculation that Facebook might step in and buy a very large cybersecurity company ー Fortinet or some of the others that are out there ー in order to really jump-start its efforts to protect its user base, its content creation," Versace said. Versace said Facebook needs its users to think the social platform is "impenetrable" so they continue to trust it with sensitive information and online payments. "So to me, it's a huge ramp, and it's one that they need to do," he added. Another challenge facing the social media giant is declining interest and use among teens. [A Piper Jaffray survey](https://www.cnbc.com/2018/10/22/instagram-ahead-of-snapchat-in-popularity-among-teens-piper-jaffray.html) reported only 36 percent of teenagers use Facebook at least once a month, putting it in fourth place among rival social media platforms. Instagram, which is owned by Facebook, hit 85 percent, beating Snapchat ($SNAP) and securing first place. "You're talking about Instagram, which is increasingly becoming the go-to product for Facebook," Versace said. "It doesn't have anywhere near the amount of issues that we've heard about from Facebook proper, and it is the platform of choice for teens and tweens and younger adults. So that's the platform they want to monetize." But it hasn't been entirely smooth sailing for Instagram, with its founders [stepping down](https://cheddar.com/videos/instagrams-founders-plan-to-leave-company-reports) amid reported tensions with Facebook founder and CEO Mark Zuckerberg. "Why the hiccup now?" Versace asked. "That is certainly going to raise some questions about the guidance that they're going to give for that business, if they give any." Facebook will set the earnings stage for Apple ($AAPL), which is scheduled to release its quarterly earnings on Thursday after market close. [A FactSet survey](https://www.marketwatch.com/story/apple-earnings-can-pricey-new-iphones-carry-the-holidays-2018-10-27) reported analysts expect Apple will earn $4.92 per share, up from $3.89 last year. For full interview [click here](https://cheddar.com/videos/facebook-set-to-reveal-earnings-tuesday).

Share:
More In Business
Ford Cuts Production of F-150 Lightning Electric Truck
Ford says it’s reducing production of the F-150 Lightning electric pickup vehicle as it adjusts to weaker-than-expected electric vehicle sales growth. The automaker said about 1,400 workers will be impacted by the move.
Apple Overtakes Samsung as Top Seller of Smartphones
Dan Ives, Managing Director and Senior Equity Analyst at Wedbush Securities dives deeper into a report by the International Data Corporation (IDC) that Apple has ended Samsung's 12-year reign as the world's largest smartphone seller.
AI is the Big Opportunity and the Risk to Watch at Davos
Artificial intelligence is the biggest buzzword at the World Economic Forum’s annual meeting in Davos. Advances in generative AI stunned the world last year, and the elite crowd is angling to take advantage of its promise and minimize its risks.
A Smarter Smart Phone?
Smartphones could get much smarter this year as the next wave of artificial intelligence seeps into the devices that accompany people almost everywhere they go.
Who Could Be The World's First Trillionaire?
In an annual assessment of global inequalities, Oxfam International said the first trillionaire could emerge within the next decade — as the anti-poverty organization pointed to the growing wealth gap that skyrocketed globally during the pandemic.
Load More