NEW YORK (TheStreet) -- Facebook (FB) shares are rising as analysts at UBS have bumped up the company's earnings estimates, ahead of the company's second-quarter results.
UBS analysts Eric J. Sheridan and Vishal J. Patel reiterated their "buy" rating and $90 price target for Facebook, noting Facebook's emerging businesses are future growth drivers which "give us greater confidence in the long-term growth trajectory."
Premium Video Ads and Instagram, are each forecast to garner $1 billion in revenues by 2017 and 2018, respectively, and have the potential for especially strong growth. Analysts questioned the Instagram purchase in 2012, but the acquisition has proved to be a successful one. At the time of the acquisition, Instagram had 15 million users; it now has over 150 million.
--Written by Laura Berman in New York >Contact by Email.
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