One of the key highlights of Facebook Inc
The social media giant remains fully committed to putting “Video First” across its family of apps, as increase in net speeds and smartphone capabilities encourage more people continue to create and share more video content than ever.
In addition, Facebook is also focused on expanding the use cases of platform, including the recent rollouts of FB Workplace and Marketplace.
“We view slowing ad loads as a conscious decision by FB to preserve user engagement rather than a function of slowing demand, and believe FB has multiple levers to drive long term ad growth across its family of apps,” Cowen analyst John Blackledge wrote in a note.
Further, the company expects revenue growth to sequentially drop in the fourth quarter on tougher year-over-year comps and also narrowed the FY16 non-GAAP opex range to +40–45 percent versus prior range of +45–50 percent.
As a result, Blackledge’s fourth-quarter revenue/EBITDA estimates move up to $8.4 billion/$5.7 billion from earlier estimate of $8.3 billion/$5.4 billion. The analyst also raised '17 EPS estimate to $5.42 from $5.23.
“In our view, the business appears remarkably strong; we would be buyers on the dip and reiterate Outperform rating,” Blackledge added.
The analyst has a price target of $150, while the stock is currently down 5.6 percent to $120.04.
|Nov 2016||Wells Fargo||Maintains||Outperform|
|Nov 2016||BTIG Research||Downgrades||Buy||Neutral|
|Nov 2016||Cantor Fitzgerald||Maintains||Buy|
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