Market Overview

Why Facebook Has Successfully Transitioned From Desktop To Mobile

Why Facebook Has Successfully Transitioned From Desktop To Mobile

Facebook Inc (NASDAQ: FB) posted phenomenal Q4 2015 results to the tune of a 52 percent increase in revenue and a 46 percent increase in non-GAAP diluted EPS. Additional data from the Q4 report came in positive as well, including advertising revenue increase of 57 percent year-over-year, which Oppenheimer stated as the "core driver of results."

In the most recent issue of "Market Digest" from Argus, the research firm claimed Facebook "has successfully made the transition from desktop to mobile."

Backing up this assertion, Argus cited Facebook's smartphone apps – the two most popular in the United States – and a plethora of areas on which the company has focused to much success, including advertising, monetization and user appeal. Additionally, Argus highlighted Facebook's foray into new areas as supporting its recent leaps and bounds, particularly within the arenas of virtual/augmented reality and messaging.

Related Link: FBR Likes Facebook Even More After Earnings

According to the Oppenheimer report, CEO Mark Zuckerberg has made it a priority to move to mobile from desktop: "Under Mr. Zuckerberg, Facebook has three operating priorities: capitalizing on the shift of computing/internet to mobile devices, growing the number of marketers that use Facebook's advertising products, and making its advertising more relevant and effective."

"The underlying goal is to increase member engagement with the site," Oppenheimer concluded.

Argus: Estimate Increases And 2017 Forecast

Based upon Facebook's recent earnings success, its progress within the sector and the tangible potential for continued success, Argus raised its 2016 EPS estimate by $0.33, from $2.60 to $2.99. Additionally, Argus established a 2017 EPS forecast of $3.77, a $0.78 jump from this year's estimate.

The firm maintained its Buy rating with an attached price target of $130.

At time of writing, Facebook was trading up 2.07 percent at $111.43.

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Latest Ratings for FB

Nov 2019UpgradesOutperformBuy
Oct 2019MaintainsHold
Oct 2019MaintainsOverweight

View More Analyst Ratings for FB
View the Latest Analyst Ratings

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