Market Overview

Pacific Crest Highlights 4 Takeaways For Facebook Investors To Watch

Related FB
Looking Beyond Q3, Twitter's Q4 Could 'Make Or Break' The Company
Citron's Andrew Left Likes Amazon, Says He's Long
Akamai Security Business Shines, Offsets Apple, Facebook Shift (Investor's Business Daily)

David Fischer, Facebook Inc. (NASDAQ: FB)'s vice president of business and marketing partnerships, participated in a chat with analysts at the AdExchanger Industry Preview Conference.

Below are some of Pacific Crest’s top takeaways.

1. Video

One of the conference’s main focuses was video. Much like its peers, Facebook seems excited about the opportunities in video, especially after building out its video unit in 2014.

“Still, [Facebook] says it has no plans to roll out pre-rolls or autoplay with sound, which somewhat limits the opportunity to the video banner market, which has many of the issues of traditional advertising," the analysts noted.

Related Link: Apple And Instagram Are Stomping Out Marijuana...But Should They?

2. Aggressive Hiring

While some investors are worried about Facebook’s “aggressive hiring plans that have led to its disappointing margin guidance for 2015,” much of the activity was related to Atlas, its ad server.

In this case, the company is hiring “ahead of a big opportunity.”

3. Facebook Exchange

Because of its limitation to desktop versions of Facebook -- and the fact that it doesn’t leverage the company’s first-party data -- Facebook Exchange is losing attention from both the company and the advertisers, analysts note.

4. Advertising

“Facebook continues to be in a great position in the advertising space and is clearly taking share,” Pacific Crest stated.

They concluded: “Facebook's opportunity with video, Instagram and Atlas is real. However, we think this opportunity is very well understood and that the risk/reward is balanced given that it continues to be everyone else's favorite Internet stock, especially with risks in app installs, shifting users' time spent and Facebook's market cap to its addressable market.”

Latest Ratings for FB

Oct 2016Credit SuisseMaintainsOutperform
Sep 2016JP MorganMaintainsOverweight
Sep 2016Loop CapitalInitiates Coverage onBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: AdExchanger AdExchanger Industry Preview Conference Atlas David Fischer Facebook ExchangeAnalyst Color Analyst Ratings Tech


Related Articles (FB)

View Comments and Join the Discussion!