Two sets of analysts this week said they believed Facebook stock could rise as high as $US65 per share — a number that was unthinkable a few months ago.
Facebook is set to deliver its Q3 earnings next week, on Thursday afternoon. In its short history, Facebook launched at $US38 in 2012, promptly collapsed to around $US17, and has been on a tear all this year.
Just last month, we expressed surprise that Facebook was about to cross the $US50 barrier — and it’s traded around $US52 ever since.
What seems to have changed is that Wall Street is waking up to the fact that Facebook is about to introduce advertising into Instagram, the wildly popular photo-sharing app it owns. Analysts at Evercore believe Instagram could throw off $US340 million in revenue in 2014.
They are at the top of the range, as this box from Yahoo Finance shows: