The huge social media leader has been on a roll, and the analysts remain very positive. Facebook Inc. (NASDAQ: FB) is the largest social network, with over 2.3 billion monthly active users and over 1.6 billion daily active users. The company generates revenue from advertising and from payments, with over 95% of revenue from advertising. It generates close to 50% of revenues in the United States and Canada and is expanding rapidly in international markets.
The company’s solutions also include Instagram, a mobile application that enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends. Messenger, a messaging application for mobile and web on various platforms and devices, enables people to reach others instantly, as well as enable businesses to engage with customers. WhatsApp Messenger is a mobile messaging application.
The company has been under intense scrutiny lately, with some alleging there has been unreasonable censorship, and it is yet another that may be targeted by either Congress or the Department of Justice, or perhaps both. With that noted, it remains one of the largest and most powerful social media platforms in the world.
The $320 Jefferies target price compares with a $322.57 consensus target and the most recent close for Facebook stock at $251.36 per share.
This had an initial public offering almost four years ago, fell back to earth fast and has recovered in a big way. Snap Inc. (NYSE: SNAP) is a social media company consisting of leading social media platform Snapchat and hardware device Spectacles. Through Snapchat, the company facilitates communication through visual media, enabled by the mobile camera.
Users are able to share photos, videos and text and are exposed to publisher content from top media companies such as The Wall Street Journal, Vogue, People, MTV and CNN. Advertisers use the platform to promote products, which has a strong reach with the coveted millennial demographic.
Nearly four years after its rocky IPO, Snap and its social-media app Snapchat have found their path and then some. The stock is outperforming rival social-media companies like Facebook and Twitter, and many feel that the upcoming earnings could be very strong for the company.
Jefferies recently lifted the price target to $65 from $41. The consensus target is $46, and Snap stock was last seen at $50.31 a share.
The Jefferies team is staying with the big boys. While a few of them may have some storm clouds forming, it is a pretty good bet that, one way or another, they all will find a way to resolve issues to the satisfaction of regulators, politicians and the rest.