Following strong earnings growth, Facebook is on a roll.
Shares are up nearly 16%.
Mobile ad revenues paved the way for the earnings beat.
“Facebook is basically a mobile company right now — a majority of its revenues come from mobile, not from the desktop product,” explained our Jim Edwards. “And the vast majority of its active users are mobile users.”
The company is seeing upgrades across Wall Street today.
Bank of America has a $US64 price target on Facebook. “With better-than-expected 4Q revenues and expense commentary about in-line to slightly above our expectations, we would expect 2014 estimates to see a meaningful increase,” wrote BofA’s Justin Post and Joyce Tran, who said investors should “maintain buy” on Facebook.
Canaccord’s Michael Graham increased his price target to $US70 for the stock. “Facebook reported another strong quarter that was dominated by the continued transition to mobile, which brings fewer ads at higher prices. This trend should continue in 2014, along with the probable ramp of Instagram revenue and video ads,” he wrote.
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