Facebook, Inc. (NASDAQ: FB) has started off very strong in 2017. The stock has climbed more than 8% and is at $124.60 per share on January 10th, 2017.Wall Street analysts expect Facebook to report $1.30 EPS with a revenue of $8.47 billion.
Aegis Capital analyst, Victor Anthony, raised its Facebook price target to $150.
According to the analyst, Tae Kim, from CNBC, “Investors should buy Facebook because its sales growth will top expectations in the coming year, according to JPMorgan, which reiterated its overweight rating and made the internet company one of its “best ideas” for 2017.”
According to Investor’s Business Daily, “Facebook spent the last year reorienting the social network toward a video-first platform. Although TV is likely the primary channel for brand managers launching a campaign, the Cowen survey said 17% of ad buyers would use Facebook video for a stand-alone brand campaign, up from 10% the prior year. And 19% of ad buyers said the same about and Alphabet-owned YouTube, up from 8%.”
Facebook is a very strong investment for two reasons. First, Facebook owns many other assets besides their platform such as WhatsApp, Facebook messenger, and Instagram. Instagram is the second highest ranked social media platform, following Facebook. Second, Facebook has recently increased its video proliferation in terms of advertisement. 17% of all add purchasers interviewed stated that they would be fine with using ONLY Facebook to promote their brand, up from 10 percent last year. These two reasons coupled with Facebook exceeding earnings expectations make this stock a promising enterprise for 2017.