This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Facebook News Feed: What Wall Street Thinks

NEW YORK ( TheStreet) -- Facebook (FB - Get Report) unveiled its new News Feed on Thursday, showing off the changes it made to keep users more engaged, and hopefully generate more revenue. Wall Street is decidedly bullish on the changes.

CEO Mark Zuckerberg said Facebook is "trying to give everyone the best personalized newspaper." It broke News Feed up into several new tabs including All Friends, Music, Photos, Following, Revamping Most Recent Feed and Games. The social networking giant wants to make the feed more engaging. At the end of the presentation, Facebook said "goodbye to clutter," an acknowledgement to a criticism its users have made in the past.

Here are what a few of Wall Street's analysts had to say about the changes:

Merrill Lynch analyst Justin Post (Buy, $35 price target):

"We reiterate Buy with a Px Tgt of $35. Facebook announced the re-design of News Feed, possibly the most important real estate for Facebook on mobile devices. The new look is more vibrant and in our view will help users better manage and organize their own personal news feeds. The redesign will be rolled out gradually on the Web and on mobile. The goal of the change is to increase engagement, and we think the changes better enable Facebook to match up vs. competing services like Twitter and Pinterest. Facebook's new design includes a new look for News Feed that can be organized based on friends, photos, music, following, games and groups. Redesign could mean bigger ads with higher prices."

Sterne Agee analyst Arvind Bhatia (Buy, $37 PT):

"We believe FB's redesigned News Feed feature could help improve user engagement and ultimately monetization. The redesign puts greater emphasis on photos (and videos) and makes them more prominent, allows filters for a curated and personalized user experience (the world's most personalized newspaper) and increases consistency of experience across the desktop and mobile. Reiterating Buy and $37 target."

Piper Jaffray analyst Gene Munster (Overweight, $38 PT):

"Today, Facebook unveiled the first major update to its News Feed product since its launch seven years ago. The updates center around giving users more control over the News Feed by offering segments to drill down on specific content. Additionally, the update enhances the entries by increasing the display of rich content like photos and videos. We believe that, while not an exciting update on the surface, over time the new News Feed presentation could lead to improved engagement on Facebook as well as new monetization opportunities. We maintain our Overweight rating."

Topeka Capital Markets analyst Victor Anthony (Buy, $40 PT):

"In our view, Facebook's updated news feed offers better presentation of content, and signals that the Company is looking to garner a slice of the rapidly growing on-line video ad dollar."

Facebook announced limited roll-out of new News Feed started yesterday on desktop. I was included in that roll-out. It will also be coming to phones and tablets "over the next few weeks," but nothing specific was mentioned.

Shares of Facebook were lower in Friday trading, off 2.13% to $27.97.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.58 0.00%
AAPL $93.74 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs