Despite the run-up in the share price of Facebook Inc. (NASDAQ: FB), security analysts rate the stock a Buy, based on data from Yahoo! Finance.
The average ratings among 40 analysts polled by Thomson/First Call is 1.8, on a scale on which a 1 is a “strong buy” and 5 a “sell.” These figures also show the analysts call last year, whether they were initiations or rating changes, were all positive.
In the current quarter, the analyst consensus is that Facebook will post earnings per share (EPS) of $0.81, compared to $0.47 a year ago. Revenue for the same period is expected to rise 48% to $6 billion. For full year 2016, expectations are that EPS will be $3.59, against $0.68 last year, with a year-over-year revenue increase of 45% to $24 billion.
Among the many comments from analysts about Facebook earnings was one from Wedbush that which said that the company’s lead in the social network sector is “insurmountable.” Another pointed out that Facebook and Google between them control the mobile advertising market.
Last quarter, Facebook posted extraordinary numbers. Revenue rose to $5.4 billion from $3.5 billion in the same quarter a year ago. EPS rose to $0.52 from $0.18. Monthly active users rose 15% from the quarter a year ago to 1.65 billion on the last day of the quarter.
Facebook shares recently sold for $119, in a 52-week range of $72.00 to $120.79. The stock has risen 111% over the past two years, against a 16% improvement in the Nasdaq.
Facebook’s market cap is now $342 billion, one of the highest among all publicly traded companies in the world.
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