Facebook (FB) Stock Higher on Q2 Earnings Beat, JMP Raises Price Target

Facebook (FB) stock is trading in the green this afternoon after posting better than expected fiscal 2016 second quarter results.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report are up 1.36% to $125.02 in early-afternoon trading on Thursday after the company reported an earnings and revenue beat for the fiscal 2016 second quarter. 

After Wednesday's market close, the Menlo Park, CA-based social networking company reported earnings of 97 cents per share on revenue of $5.44 billion, beating analysts' estimates of 82 cents per share on revenue of $6.02 billion. 

Monthly active users increased by 15% to 1.71 billion from last year and topped Wall Street's expectations for 1.69 billion users.

JMP raised the company's price target based on the "impressive results," and calls the stock one of its "top picks across the Internet sector."

Facebook's ad revenue grew 63% year-over-year, and the firm believes it will continue to grow as a result of its "reach, targeting capabilities, and ROI."

The company also has a number of short-term catalysts going for it, such as "new ad products, Instagram, and video," the firm noted. 

(Facebook is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings with afree trial.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate FACEBOOK INC as a Buy with a ratings score of B+. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: FB

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