This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

How Facebook Gains 20% From Here

Stocks in this article: FB

NEW YORK ( TheStreet) -- Facebook's (FB) third-quarter earnings are set for Wednesday and with so much momentum behind the company and the stock, Wall Street has been exceptionally positive on the social network as of late. In fact, one analyst believes shares could jump another 20% from here.

Credit Suisse analyst Stephen Ju raised his price target to $61, some 20% higher than current levels, given the prospects for 2014 earnings amid increased mobile monetization.

"While we maintain our positive bias on FB with the company set to capitalize on the continued movement of brand advertising budgets online, with shares already reflecting what we believe are near-to-medium term benefits of both mobile monetization as well as FBX, we maintain our Neutral rating for now," Ju wrote in a report.

Ju is raising his full-year 2013 and 2014 estimates for the social networking giant because of strength in advertising revenue. He now expects Facebook's revenue in 2013 to rise by 5.7% and in 2014 by 15.1%. Of that advertising revenue, Ju projects $3.1 billion in 2013 and $6.2 billion in 2014 will come from mobile advertising.

For the third quarter, Ju expects Facebook to generate $1.9 billion in revenue, with $888 million coming from mobile advertising.

Analysts surveyed by Thomson Reuters are looking for Facebook to generate earnings of 18 cents a share on $1.91 billion in revenue.

Facebook's mobile business has turned from a source of investor skepticism at the time of the company's initial public offering to a source of delight. Earlier this year, Facebook Chief Financial Officer David Ebersman told TheStreet the company fully transitioned to becoming a mobile company in 2012 and it expects to stay that way. "2012 was the year Facebook became a mobile company," Ebersman said in January. "Mobile provides a huge opportunity for Facebook, and we're working to make sure our ad products work well on mobile."

In the second quarter, Facebook's mobile revenue accounted for 41% of the company's $1.6 billion in total advertising revenue, up 61% year-over-year. That is part of a larger trend, as the company has improved mobile revenue each quarter this year. In the first quarter of 2013, mobile revenue accounted for 30% of total advertising revenue.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs