J.P.Morgan Reiterated Overweight Rating on Facebook

J.P.Morgan analyst Doug Anmuth reiterated an Overweight rating on

. Anmuth noted that teens in the 13-15 age group have decreased their daily usage of Facebook shifting their focus to Facebook-owned Instagram. J.P. Morgan commented on the updated Facebook Messenger which enables texting through phone numbers (outside of Facebook). The analyst also expects that ad load will continue to grow and that the marketer demand for Facebook ads increases. J.P. Morgan added, "Quality and pricing should also benefit from the roll-out of auto-play video ads in 2014. The launch of these ads has been delayed multiple times as Facebook ensures the right user experience at launch. Over the last several months we believe users have become more comfortable with video in the feed, including click-to-play ads—which we believe are doing well, especially with entertainment advertisers—and testing of auto-play video posts uploaded by users." Facebook closed at $47.01 on Wednesday.