Will Facebook (FB) Stock Be Helped as Wedbush Remains Bullish?

Facebook (FB) stock is down on Thursday morning even as Wedbush said the tech giant is a ‘great company, period.’
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report are declining 0.62% to $121.17 on Thursday morning even as Wedbush maintained an "outperform" rating and $145 price target on the stock.

The firm expects strong mobile advertising momentum to drive the social media giant to better-than-expected results for the 2016 second quarter, Barron's reports.

Facebook has a "virtually insurmountable" competitive advantage due to its 1.6 billion active users and daily active users of over 1 billion.

Wedbush expects the company to continue its rapid expansion abroad and increase the monetization of underpenetrated assets such as Instagram, WhatsApp and Facebook Messenger, Barron's noted.

Additionally, investments in new initiatives position the company well for long-term growth, according to the firm.

"Facebook is a great company, period," Wedbush wrote in an analyst note cited by Barron's.

The tech giant is scheduled to report its 2016 second quarter results after the market close on July 27.

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

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B+ on the stock.

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.

The team believes 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.

Recently, 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.

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

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