Facebook (FB) Could Gain as Co. Gets Ready to Monetize Instagram - Analyst

Facebook (Nasdaq: FB) CEO Mark Zuckerberg made the decision to purchased Instagram for $1 billion about a year ago, and it may take steps to monetize the photo sharing business this year, thinks Topeka Capital analyst Victor Anthony. In his view this would add at least $1.73 in share value, or 6% upside from the current share price.

"Currently investors are assigning zero value to Instagram in Facebook's valuation because the asset has yet to generate one penny of revenues. While exact timing is uncertain, we believe that Facebook will take the step to monetize Instagram this year with advertising," said Anthony.

Topeka Capital has a Buy rating on Facebook with a price target of $40.00

For an analyst ratings summary and ratings history on Facebook (NASDAQ: FB) click here. For more ratings news on Facebook click here.

Shares of Facebook closed at $26.82 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Piper Sandler Reiterates Overweight Rating on Estee Lauder (EL), 'F4Q26 Preview'
• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)