UPDATE: Facebook (FB) PT Raised to $400 at Morgan Stanley After Impressive Growth Misses Whisper
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Morgan Stanley analyst Brian Nowak raised the price target on Facebook (NASDAQ: FB) to $400.00 (from $375.00) after the company reported 56% Y/Y 2Q ad revenue growth, ~1% ahead of expectations but light of lofty buy-side expectations following out-sized beats at SNAP, TWTR and GOOGL.
The analyst reiterated an Overweight rating, stating "To be very clear, FB’s results speak to the continued momentum on the platform, with strength coming from e-commerce, CPG and recoveries in travel and media. But investing, like allocating ad dollars, is often relative…as FB’s growth (in this strong ad backdrop) make GOOGL’s outsized dollar beat look even more impressive. Consider that the Y/Y ad dollars added gap between GOOGL and FB has materially widened the last 2 quarters. We attribute this to GOOGL core search still being more of an ad ROI driven consumer utility than FB and more developed (and improving) monetization engagement drivers at GOOGL (specifically around shopping/ecommerce and video/YouTube). This, in our view, speaks to why it is critical for FB to execute on some of its own emerging monetization opportunities like Shopping, messaging, video, Reels, etc."
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