Facebook (FB) Swaps 'Credits' for Dollar Bills

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Analysts at Baird Equity Research are calling Facebook’s (Nasdaq: FB) decision to replace 'Facebook Credits' with real-world currencies a positive move for the company. Facebook Credits did not meet its goal of becoming the de facto virtual currency for in-app transactions. As a result they are shifting to local currencies to streamline the payment process.

Facebook is also adding a subscription option, which will allow developers such as Zynga and Spotify to monetize apps via a recurring revenue stream.

“We view these changes as neutral to positive for the company, with potentially higher conversion and monetization rates, resulting from the change,” said Colin Sebastian, an analyst at Baird. “With the introduction of a subscription engine, Facebook is providing more flexibility for application developers to monetize their services.”

Baird has an Outperform rating on Facebook and a 37 price target.

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 $31.91 yesterday, with a 52 week range of $25.52-$42.99.

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