Skip to main content

Market Overview

Facebook's Earnings Continues To Impress Analysts, Stifel Sees Upside To $200 Per Share

Facebook's Earnings Continues To Impress Analysts, Stifel Sees Upside To $200 Per Share

Yet again, Facebook Inc (NASDAQ: FB) impressed investors with its earnings report, which was highlighted by "impressive" momentum in its advertising business, Stifel's Scott Devitt commented in a research report. The analyst maintains a Buy rating on Facebook's stock with a price target boosted from $170 to $200 (see Devitt's track record here).


For the first time in more than four years, Facebook's ad revenue growth was below 50 percent on a year-over-year basis, but at 49 percent (excluding foreign exchange), it was more than sufficient as the company approaches the $40 billion annual run-rate, the analyst stated. Growth in the quarter was driven by 23 percent pricing growth, but a 19 percent impression growth does mark the slowest inventory growth since 2015.

Looking forward impressions are expected to continue slowing down by a few hundred basis points per quarter, Devitt added. As such, Facebook will also see slower revenue growth but could be countered by incremental monetization from Messenger which is expected to "move a little faster."

As a whole, Facebook's ramping contributions from video and Instagram should nevertheless keep the company's growth at "healthy levels" through at least the end of the year. But over the next year, management will need to "fend off challenging year-over-year comps" from ramping monetization on Messenger and the potential for revenue initiatives from WhatsApp.

Finally, over the longer-term initiatives in artificial intelligence and augmented reality also "carry significant optionality."

At time of publication, shares of Facebook were up 5.18 percent at $174.19.

Related Links:

Could Facebook's Purchase Of Instagram Be The Best Acquisition Of All Time?

Cramer Doubles Down On Negative Snap Thesis, Praises Instagram: 'You Cannot Compete With Free'

Latest Ratings for FB

Jun 2021KGI SecuritiesInitiates Coverage OnOutperform
May 2021HSBCMaintainsReduce
May 2021CitigroupDowngradesBuyNeutral

View More Analyst Ratings for FB
View the Latest Analyst Ratings


Related Articles (FB)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings Long Ideas News Price Target Reiteration Analyst Ratings Movers Best of Benzinga

Latest Ratings

ATERRoth CapitalMaintains25.0
FMTXSVB LeerinkMaintains54.0
PLXSLoop CapitalMaintains105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at