Market Overview

RBC Says Facebook's Libra Could Be A 'Watershed Moment' For Cryptocurrency

Share:
RBC Says Facebook's Libra Could Be A 'Watershed Moment' For Cryptocurrency

Facebook, Inc. (NASDAQ: FB)'s launch of its own branded digital currency called Libra could prove to be a "watershed moment," according to RBC Capital Markets.

The Analyst

RBC's Mark Mahaney maintains an Outperform rating on Facebook with a $250 price target.

The Thesis

Facebook's Libra addresses the need to create a digital currency and infrastructure to power the "internet of money," Mahaney wrote in a note. The platform will be built on a blockchain backed by a reserve of assets that gives the digital currency intrinsic value. The platform will also be overseen by the independent Libra Association.

Facebook's "White Paper" on Libra calls for a new programming language for the Libra protocol called Move, Mahaney wrote. Transactions will be based on user-defined smart contracts based on the new protocol.

Overall, Facebook's goal is to create "a decentralized, programmable database designed to support a low-volatility cryptocurrency that will have the ability to serve as an efficient medium of exchange for billions of people around the world."

Facebook's initiative boasts similarities to Apple Inc. (NASDAQ: AAPL)'s launch of the iOS platform to developers more than 10 years ago, according to Mahaney.

Price Action

Shares of Facebook were trading higher by 2.4% at $193.50 ahead of Tuesday's market open.

Related Links:

Legal Expert Breaks Down Antitrust Risk For Big US Tech Stocks

Heavy On Alphabet And Facebook, This ETF Earns A Neutral Rating

Latest Ratings for FB

DateFirmActionFromTo
Aug 2019AssumesBuy
Jul 2019MaintainsOutperform
Jul 2019MaintainsBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Blockchain Facebook Libra LibraAnalyst Color Cryptocurrency Top Stories Markets Analyst Ratings Best of Benzinga

 

Related Articles (AAPL + FB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
WUBABOCOM InternationalDowngrades
DLTROTR GlobalUpgrades
ARCCCompass PointDowngrades
GTYHCitiInitiates Coverage On7.0
NKEGuggenheimMaintains100.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
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 vipaccounts@benzinga.com

Digital Ally Slammed After Axon Prevails In Patent Case

Benzinga's Top Upgrades, Downgrades For June 18, 2019