- Facebook Inc (NASDAQ: FB) is 17.7 percent higher year-to-date, outperforming the Nasdaq 100 by 16 points.
- Youssef Squali at Cantor Fitzgerald reiterated the firm's Buy rating and $105 price target on the stock.
- Squali pointed to monetization success with Instagram, as well as WhatsApp popularity, as evidence of catalysts that could move the stock higher.
Cantor Fitzgerald's Youssef Squali reiterated his view that Facebook is the firm's "top pick in the Internet space." Squali highlighted a "string of positive announcements at the company. Two weeks ago, Facebook had 1 billion people use the service in a single 24-hour period. WhatsApp also recently crossed 900 million monthly active users. Then, just this week, the company announced it would launch Instagram ads on a wider basis.
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Squali pointed to that last one as potentially the most significant development, at least from a monetization perspective. In the next 12 months, Squali said that the Instagram business should generate more than $1 billion in revenues. Additionally, Cantor Fitzgerald noted that in addition to the immediate opportunities, Instagram is also experimenting with other ad capabilities that could prove fruitful in the intermediate term.
Further, at core Facebook, Squali pointed to new features that would make it "easier for 45+M active businesses on Facebook Pages to highlight information and reach their goals." That includes better call-to-action buttons and new sections, all of which "strengthens Facebook as a mobile solution for local businesses."
At current price around $91, the $105 price target would reflect 15 percent upside in the stock. To date, Facebook hit an all-time high of $99.24 before prices retreated in mid-July.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.