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.
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts