As Facebook entrenches itself as a mobile company, the company is releasing more and more products to spur revenue growth from this portion of advertising revenue. Facebook Home, which was
is one such announcement. The app was designed to increase engagement, and ultimately ads will come to the product, which is available on select Android devices. Products such as Facebook Home and a revamped
designed to show off brighter and bigger stories, are examples of innovation from the social network designed to stimulate the user experience, and ultimately, revenue growth.
Topeka Capital Markets
analyst Victor Anthony believes usage worries, which were recently outlayed by comScore, as well as Facebook itself, seem overblown. "We saw that Facebook remains in favor with teenagers, and is used along with other platforms," Anthony wrote in his research note. "Separately, we believe that Facebook will exceed the consensus revenue estimates on strength in model advertising . . ." Anthony rates Facebook shares "buy" with a $40 price target.
With mobile playing an enormous role in Facebook's future, the pressure is on the company to keep delivering growth, and show investors that it's able to generate serious cash from mobile. If it's able to demonstrate this, Facebook could have Wall Street "liking" it for the first time in quite a while.
Written by Chris Ciaccia in New York