Skip to main content

Facebook Rises as Deutsche Bank Says iOS Change Less Concerning

Facebook is higher as Deutsche Bank raised its price target, saying concern about Apple's pending iOS privacy-policy change is abating.
  • Author:
  • Publish date:

Facebook  (FB)  shares were higher analysts at Deutsche Bank reiterated a buy rating and raised their price target on the social-media giant. 

The investment firm now has a $385 price target on Facebook, up from $355, as it sees advertising trends improving and investor concern about a coming change to Apple's  (AAPL)  iOS privacy policy abating. 

"[Investor] focus is starting to shift away from fears around iOS changes towards a continued ad recovery and benefits from more e-commerce activity shifting into Facebook's platform," analyst Lloyd Walmsley said.

Deutsche Bank data checks show that advertisers have continued to spend on the platform in first-quarter 2021.

The firm notes that Chief Executive Mark Zuckerberg indicated in a recent chat on the Clubhouse app that Apple's new privacy policy could encourage more businesses to establish an e-commerce presence within Facebook platforms. 

Zuckerberg noted that the Menlo Park, Calif., social-media provider now has 1 million active shops with 250 million users interacting with them on a monthly basis. For reference, Shopify  (SHOP)  had more than 1.7 million global merchants at the end of 2020. 

"We increase our first-quarter 2021 [excluding foreign exchange] ad-revenue growth to 31% (from 28.5% previously)," Walmsley said.  

This outlook reflects "positive industry data, positive ad checks, the delay of iOS changes and recent optimism from Zuckerberg." 

Facebook shares at last check were 2.6% higher at $290.28. 

Facebook is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells FB? Learn more now.