Market Overview

Munster Says Facebook's Instagram Most Important Social Network for Teens; Shares Trade Higher

Share:
Related FB
How Ad Companies Have Responded To A Changing Media Landscape
SEC To Review Decision Denying Bitcoin Market Listing
IFP Advisors, Inc Buys iShares Core S&P Mid-Cap, iShares Core S&P Small-Cap, iShares ... (GuruFocus)
Related TWTR
Mid-Afternoon Market Update: iRobot Gains On Earnings Beat; Seagate Shares Plummet
Jim Cramer Cheers A 'Kinder, Gentler' Twitter
Stocks Open Flat; Earnings Reports Trigger Early Breakouts (Investor's Business Daily)

Shares of Facebook (NASDAQ: FB) are trading higher by 1.65 percent to $58.19 after Gene Munster, analyst at Piper Jaffray, made bullish comments on Instagram.

Piper Jaffray conducted a survey of 7.5 thousand teens on what was the most important social network. Teens voted:

  • Instagram - 30%
  • Twitter (NYSE: TWTR) - 27%
  • Facebook - 23%

Remember, Facebook bought Instagram back in April 2012 for $1 billion. The acquisition was questioned by pundits, but now no one can argue the deal a brilliant move.

Munster believes the Instagram success adds credibility to the WhatsApp and Oculus acquisitions.

The analyst also feels Facebook's ten year sustainability will be fueled by acquisitions, as its core business is “fleeting” due to competition from other social platforms.

Munster reiterated an Overweight rating and has a $67.00 price target on shares of Facebook.

Shares had been down 13.6 percent from February's closing price before the Munster comments. The drop took shares nearly to the earnings gap from January 29.

Latest Ratings for FB

DateFirmActionFromTo
Apr 2017Credit SuisseMaintainsOutperform
Mar 2017BarclaysInitiates Coverage OnOverweight
Mar 2017BTIG ResearchUpgradesNeutralBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Gene Munster Instagram Oculus Piper JaffrayAnalyst Color Analyst Ratings Movers Tech

 

Related Articles (FB + TWTR)

View Comments and Join the Discussion!