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J.P. Morgan Reiterates on Facebook, Noting Ad Load Will Continue to Grow

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J.P. Morgan analyst Doug Anmuth reiterated an Overweight rating on Facebook, Inc. (NASDAQ: FB).

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 Friday.

Latest Ratings for FB

Aug 2017SunTrust Robinson HumphreyInitiates Coverage OnBuy
Aug 2017MizuhoReinstatesBuy
Jul 2017Pivotal ResearchDowngradesHoldSell

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Doug Anmuth J.P.MorganAnalyst Color Reiteration Analyst Ratings


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