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Pacific Crest Highlights 4 Takeaways For Facebook Investors To Watch

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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.

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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

DateFirmActionFromTo
Dec 2019UpgradesHoldBuy
Dec 2019Initiates Coverage OnReduce
Dec 2019Initiates Coverage OnOverweight

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

 

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