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Facebook Inc and Amazon.com, Inc: Top-Ranked Analyst Bullish

By George MacDonald

Top-ranked Cantor Fitzgerald analyst Youssef Squali, who rates internet and media stocks, recently shared his views on Facebook Inc (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN).

Facebook, Inc.

Last week, Facebook announced its plans to partner with Moat, an advertising analytics company, so it can independently measure the performance of its video ads. This means advertisers won’t have to rely on Facebook’s word alone to see the number of views generated for a particular video ad campaign; they will also get the views of an independent outside auditor to confirm the statistics shared by the social networking giant. Squali views this news as a positive.

In addition, Facebook has introduced a new feature that changes the way advertisers are charged for in-view impressions. With the new feature, advertisers will be charged only for those ads that are scrolled from top to bottom, as opposed to earlier when advertisers had to pay in full even if 50% of the ad was visible on the screen. Squali believes this move can potentially increase the company’s ad revenues. He says, “We believe this news is an incremental positive for Facebook, as it reduces yet another potential friction point for advertising on the largest social network.”

Youssef Squali maintains a Buy rating on Facebook with a price target of $105. Out of the 40 analysts polled by TipRanks in the last 3 months, 37 are bullish on FB, 2 are neutral, and 1 is bearish. The average 12-month price target for the company is $111.65, marking a 16% potential upside from current levels.

Amazon.com, Inc.

The online retail giant recently released a tablet computer priced at less than $50. Additionally, Prime Now, the company’s one-hour delivery service is now available all over Los Angeles. Prime’s value proposition got a further boost after Amazon awarded Prime members with unlimited online access of the Washington Post for 6 months.

Squali said, “We view the introduction of a low-priced tablet as an attempt by Amazon to drive greater mass market adoption for its tablets, which should arguably lead to greater interaction with its online platform, given the tight integration between the Fire OS and Amazon.com.”

Squali reiterated his Buy rating on Amazon with a price target of $670. According to TipRanks, 32 analysts have weighed in on Amazon in the last 3 months. Of which, 29 are bullish on the ecommerce giant while 3 are neutral. The average 12-month price target is $631.33, marking a 15% upside from current levels.