Facebook (FB) Gains in Whipsaw Session
Tweet
Share
E-mail
Get Alerts FB Hot Sheet
Price: $44.00 --0%
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 17
Rating Summary:
46 Buy, 17 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 17
Join SI Premium – FREE
Facebook's (NASDAQ: FB) stock today acted like the hormonal teenagers that are apparently leaving the site.
After ripping over 10% immediately following blowout Q3 results, complete with 60% revenue growth and 45% Mobile MAUs growth, shares tumbled into the red on news from the conference call that young teens are slowing their use of the site and ad loads would be more stable going forward.
Starting in the red in pre-open trade Thursday and into the late morning, shares regained positive territory after analyst after analyst on Wall Street began pounding the table on the stock.
"We believe the pullback in shares creates a compelling buying opportunity in Facebook shares," said JPMorgan analyst Doug Anmuth. He cited 1) overall teen usage remains stable, some younger users are likely going to Facebook-owned Instagram, and Facebook is investing in messaging products to address teenage usage specifically; and 2) strong advertiser demand supports higher ad prices despite relatively stable ad load growth going forward and we believe 3Q results were a validation of this strategy.
Many others had similar things to say.
Wedbush analyst Michael Pachter said, "We believe a premium multiple is warranted given that Facebook is only just beginning to realize the vast monetization potential presented by its global user base and an evolving portfolio of advertising products. We recommend that investors continue to accumulate shares of Facebook while they trade at a discount to our revised price target."
After a brief hiatuses, investors finally stated to listen.
Shares of Facebook are up 2.2% into the close.
After ripping over 10% immediately following blowout Q3 results, complete with 60% revenue growth and 45% Mobile MAUs growth, shares tumbled into the red on news from the conference call that young teens are slowing their use of the site and ad loads would be more stable going forward.
Starting in the red in pre-open trade Thursday and into the late morning, shares regained positive territory after analyst after analyst on Wall Street began pounding the table on the stock.
"We believe the pullback in shares creates a compelling buying opportunity in Facebook shares," said JPMorgan analyst Doug Anmuth. He cited 1) overall teen usage remains stable, some younger users are likely going to Facebook-owned Instagram, and Facebook is investing in messaging products to address teenage usage specifically; and 2) strong advertiser demand supports higher ad prices despite relatively stable ad load growth going forward and we believe 3Q results were a validation of this strategy.
Many others had similar things to say.
Wedbush analyst Michael Pachter said, "We believe a premium multiple is warranted given that Facebook is only just beginning to realize the vast monetization potential presented by its global user base and an evolving portfolio of advertising products. We recommend that investors continue to accumulate shares of Facebook while they trade at a discount to our revised price target."
After a brief hiatuses, investors finally stated to listen.
Shares of Facebook are up 2.2% into the close.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- JPMorgan's Dimon likely to continue as CEO for another three years - Reuters
- DA Davidson Downgrades Open Lending (LPRO) to Neutral
- Kymera Therapeutics (KYMR) PT Raised to $155 at B.Riley
Create E-mail Alert Related Categories
Analyst Comments, Earnings, Insiders' BlogRelated Entities
JPMorganSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
