- Facebook (NASDAQ:FB) is up 2.9% now after tagging its all-time high, following an earnings report where it posted deep double-digit gains in profits and revenues and crested 2B monthly active users.
- Despite warnings from management about core ad load, Canaccord Genuity says it still sees "other avenues for growth that keep us optimistic," namely: ad pricing responding nicely to slower inventory growth; a mix shift to video ads; video driving engagement and revenue; Instagram; and the prospect of "robust" monetization of messaging.
- The firm reiterated its Buy rating and boosted price target to $190 from $175.
- Credit Suisse (SIX:CSGN) boosted its price target to $190 from $180, pointing to the acceleration in ad price growth as its most important takeaway. The quarter serves as a "stronger signal for upside potential" in the second half, and "should drive greater urgency among investors to add to FB positions."
- Pivotal's Brian Wieser notes that despite a revenue slowdown (as forecast), growth was still significant considering "how big it already is." He has a Hold rating and $140 price target.
- And Jefferies' Brian Fitzgerald has raised to a heavy price target: $215, implying 26% upside. The firm's focused on Facebook's video expansion to drive user engagement across all platforms, and expects ongoing upside in usage and in average revenue per user.
- Now read: Is It Too Late To Buy Facebook?
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