Facebook (FB) Desktop Cannibalization Slowing
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Price: $44.57 +0.27%
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 24 | New: 9
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 24 | New: 9
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Speculation is heating up heading in to Facebook's (Nasdaq: FB) mysterious meeting tomorrow, but analysts at Oppenheimer are more interested in the details of Facebook's bread and butter, advertising revenue. Importantly, analysts think desktop adverting is at an inflection point.
"Recent comScore data suggests an inflection in U.S. desktop usage, implying mobile cannibalization may have slowed," said analyst Jason Helfstein.
If Helfstein is correct and desktop revenue is stabilizing, it could be a real positive for stock, especially since other areas of advertising, including Facebook exchange, are seeing improvements.
"We expect 4Q:12 to be the first quarter where FB sees a meaningful contribution from FBX, the company’s real-time bidding exchange. These 'retargeting' ads command a higher Cost Per Thousand (CPM). Sources claim that ROI is at least 2x Marketplace, suggesting meaningfully higher pricing," said Helfstein.
Oppenheimer reiterated an Outperform rating on Facebook (NASDAQ: FB) and raised its price target to $34.00 (from $27.00).
For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.
Shares of Facebook closed at $31.72 yesterday.
"Recent comScore data suggests an inflection in U.S. desktop usage, implying mobile cannibalization may have slowed," said analyst Jason Helfstein.
If Helfstein is correct and desktop revenue is stabilizing, it could be a real positive for stock, especially since other areas of advertising, including Facebook exchange, are seeing improvements.
"We expect 4Q:12 to be the first quarter where FB sees a meaningful contribution from FBX, the company’s real-time bidding exchange. These 'retargeting' ads command a higher Cost Per Thousand (CPM). Sources claim that ROI is at least 2x Marketplace, suggesting meaningfully higher pricing," said Helfstein.
Oppenheimer reiterated an Outperform rating on Facebook (NASDAQ: FB) and raised its price target to $34.00 (from $27.00).
For an analyst ratings summary and ratings history on Facebook click here. For more ratings news on Facebook click here.
Shares of Facebook closed at $31.72 yesterday.
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