Needham & Company Maintains a 'Buy' on Facebook (FB); Mobile Monetization Robust Over Time

July 27, 2012 9:15 AM EDT
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Price: $127.04 -0.4%

Rating Summary:
    49 Buy, 8 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company maintains a 'Buy' on Facebook (NASDAQ: FB) price target of $40.00.

Analyst, Laura Martin, said, "The FB story for 2Q12 was all about mobile growth and its negative near-term impact on monetization. FB is the most downloaded app across every mobile platform. Mobile monthly average users (MAUs) hit 543 million in June, up 55mm Q/Q and up 67% y/y. Mobile user growth was identical to total user growth, at 55mm. Mobile users now represent 57% of total FB users. Mobile users are 20% more likely to use FB on any given day."

"We expect FB’s mobile revenue profile to mirror this as advertisers try to catch up with consumer adoption of mobile platforms. Because we believe that mobile monetization will be robust over time, we would suggest that FB’s rapid mobile growth should be viewed as a valuation positive, contrary to the consensus view."

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 $26.85 yesterday.

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