Facebook (FB): Video First Ensures Growth Despite Falling Ad Loads - Needham
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Needham & Company analyst, Laura Martin, reiterated her Buy rating on shares of Facebook (NASDAQ: FB) and suggests investors use the weakness to take positions. The analyst believes that FB's continuing shift toward "Video first" coupled with its dominant mobile strategic position for advertisers implies that FB's growth will continue to outpace peers and over deliver on estimates.
The analyst is less worried about slowing ad load growth because demand for FB's ad units should drive pricing up faster than ad unit growth slows. FB still has the monetization of FB Messenger and What’s App in front of it, and Instagram stories and FB Live (video) are growing FB's video ad revenue opportunities, as is FB'S build out of Video Home- all of which sell at significant CPM increases, this should drive revenue growth despite slowing ad load growth.
No change to the price target of $150.
Shares of Facebook closed at $127.17 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Cuts Price Target on Kroger (KR) to $30 Following 3Q and Guidance
- FBR Capital Cuts Price Target on Express (EXPR) Following 3Q EPS Miss
- Shopify (SHOP): CFO Meetings Indicate Strong Growth Ahead - Wedbush
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!