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

How Facebook Gains 20% From Here

NEW YORK ( TheStreet) -- Facebook's (FB - Get Report) 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

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 $102.01 0.00%
AAPL $93.99 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%
YHOO $27.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs