Analyst Colin Sebastian maintained his outperform rating while saying that the second quarter likely represented the bottom for Facebook while revising 2020 revenue and EPS estimates higher than consensus.
The firm expects revenue of $78.18 billion and earnings of $7.50 per share for the year, ahead of Wall Street's consensus of $77.03 billion and $7.32 per share, respectively.
"While still a far cry from the amazing and historic growth levels in e-commerce, the digital ad market likely emerges stronger from the current environment, and large platforms such as Facebook are well positioned to capitalize on these trends longer term," Sebastian wrote.
Baird also issued revised 2020 EPS and revenue estimates of $167 billion and $43.01 per share compared to Wall Street's consensus estimates of $169.3 billion and $42.02 per share.
"We believe a recent focus on growth and expansion of the company's infrastructure, platform and software cloud services are finally starting to pay off for Google," Sebastian wrote.
For Google, "any uptick in travel/events and local services will also add to the improving picture," according to Sebastian.
However, the firm does not expect there to be normalized levels of revenue for the company until next year.
Google shares were falling 0.2% to $1,430.10 premarket while Facebook shares were rising 0.4% to $234.90.