Market Overview

Facebook Will Be Biggest Beneficiary Of Mobile & Video Ads, Could 'Subsume' Twitter's Usefulness

Share:
Facebook Will Be Biggest Beneficiary Of Mobile & Video Ads, Could 'Subsume' Twitter's Usefulness
Related FB
DA Davidson: Near-Term Applied Optoelectronics Outlook Blurred By Inventory Congestion, China Weakness
A Chat With Chris Boudreau, CEO Of Cannabis Courier Driven Deliveries
Is Facebook fixing data privacy issues? (Seeking Alpha)
Related TWTR
As Zion Williamson Falls, So Do Nike Shares
Facebook Vs. Twitter Vs. Snapchat: How Do Key Statistics Compare?
Stocks To Watch: Food For Thought (Seeking Alpha)

While shares of Facebook Inc (NASDAQ: FB) trading at all-time highs, Twitter Inc (NYSE: TWTR)'s shares continue to languish in the mid-$30 area.

RBC Capital analyst Mark Mahaney was on CNBC Wednesday to discuss where the stocks of these two companies are headed.

Facebook

Mahaney was asked what Facebook is worth. He replied, "They are worth $105, that's our price target. At one point, Facebook probably was worth $15 because they couldn't figure out mobile. Once they figured out mobile, which is where all their dramatic growth has been over the last three years, then the stock deserved to appreciate to go higher.

"It just hit a all-time high yesterday. Maybe there's a little bit of positive sentiment about Oculus Rift coming out of the E3 conference last year."

Related Link: RBC's Mark Mahaney: Netflix Now A 'Small Buy For Us,' Stock Split 'Irrelevant'

He continued, "We're starting to see more apps within Instagram, that's the greenfield opportunity. That can probably generate $2 billion in new revenue for the company next year and what's the big theme in Internet advertising this year? Mobile and video, and Facebook is probably the single best derivative off that trend."

Twitter

On his current outlook for Twitter, Mahaney said, "We're on sidelines on Twitter. We haven't recommended the stock in quite some time, we did after the IPO.

"There's too much of wood to chop at that company both in terms of fixing the product for user and fixing the product for advertisers. There's a lot of uncertainty about it. If one company can take out the other's TAM or total adjustable market, it's more likely to be Facebook taking up Twitter's TAM than the other."

Mahaney said the "usefulness" of Twitter could all be "subsumed" by Facebook.

Latest Ratings for FB

DateFirmActionFromTo
Jan 2019Raymond JamesMaintainsOutperformOutperform
Jan 2019NomuraMaintainsNeutralNeutral
Jan 2019Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: CNBC Instagram Mark Mahaney RBC CapitalAnalyst Color Analyst Ratings Media Best of Benzinga

 

Related Articles (FB + TWTR)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
CJefferiesUpgrades73.0
INTCMorgan StanleyUpgrades0.0
SOEvercore ISI GroupUpgrades0.0
ADBEDZ BankDowngrades0.0
AVGOCowen & Co.Downgrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

MKM Analyst Sheds Light On BlackBerry's 'Bright Spot'

Benzinga's Top Upgrades