What Analysts Are Saying About Facebook After Earnings

July 25, 2019 by 247chrislange

Source: Chris Jackson / Getty Images
Facebook Inc. (NASDAQ: FB) released second-quarter financial results after markets closed Wednesday. Although investors were not thrilled with results, analysts seemed to be much more optimistic about what’s in store for Facebook.

247 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about Facebook after the fact.

The social media giant said that it had $0.91 in earnings per share (EPS) and $16.9 billion in revenue, which compared with consensus estimates that called for $1.88 in EPS and $16.5 billion in revenue. The same period of last year reportedly had $1.74 in EPS and $13.23 billion in revenue.

During the quarter, daily active users were 1.59 billion on average for June 2019, an increase of 8% year over year. At the same time, monthly active users increased by 8% to 2.41 billion.

Mobile advertising revenue represented roughly 94% of advertising revenue for the second quarter of 2019, up from about 91% of advertising revenue in the same period last year.

Additionally, management estimates that more than 2.1 billion people now use Facebook, Instagram, WhatsApp or Messenger every day on average, and around 2.7 billion people use at least one of this family of services each month.

Here’s what analysts had to say after earnings:

  • Baird has an Outperform rating and a $230 price target.
  • Mizuho has a Buy rating with a $247 price target.
  • Credit Suisse has an Outperform rating and a $250 target.
  • Nomura has a Buy rating with a $235 price target.
  • Jefferies has a Buy rating with a $250 price target.
  • Citigroup has a Buy rating with a $240 price target.
  • Morgan Stanley has an Overweight rating and a $235 target.
  • Canaccord Genuity has a Buy rating and a $240 price target.
  • JPMorgan has an Overweight rating and a $255 price target.
  • KeyCorp has an Overweight rating with a $240 price target.
  • Pivotal Research has a Buy rating with a $225 price target.

Shares of Facebook traded down about 3% on Thursday, at $198.82 in a 52-week range of $123.02 to $208.65. The consensus price target is $223.19.


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