Deutsche Bank Says Facebook Is 'Hitting Strides' With Video

Ross Sandler of Deutsche Bank on Thursday commented in a note that

continues to deliver strong results and shares remain attractive versus other names in consumer Internet given its many revenue levers it hasn't pulled yet. In terms of video, Sandler notes that Facebook “appears to be hitting strides” in both the fourth quarter and in 2015 with three billion daily native video plays, over 65 percent mobile, and likely a key factor in the U.S. ad growth strength. The analyst adds that video could be a $1 billion plus business in 2015. However, Sandler states that Facebook continues to exceed estimates, but to a lesser degree, suggesting consensus estimates have caught up with reality. In addition, the analyst suggests that Instagram and Ad Tech monetization will likely take longer to ramp than consensus expectations, offset by stronger video. Finally, foreign exchange is expected to be an even bigger drag on 2015 numbers than it was in the fourth quarter. Shares are Buy rated with a $90 price target.