NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report are climbing 0.15% to $121.18 this morning after analysts at Morgan Stanley said the company has not been negatively impacted by Snapchat's growing popularity.
"We don't believe Snapchat is having a material impact on Facebook's engagement or daily active user (DAU) growth," the firm said in a note cited by Bloomberg.
Citron Research recently said Facebook seems to be "losing its relevancy" to the social media upstart.
Snapchat, a Venice, CA-based social media company, has 150 million daily active users. The company turned down a $3 billion takeover deal by Facebook in 2013.
However, Morgan Stanley added that Facebook shows strong and inflecting second quarter engagement despite concerns over rival Snapchat. The firm argued that Facebook is seeing growth in the 18-24 and 25-34 year-old base, two coveted younger demographics.
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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 rated this stock as a "buy" with a ratings score of B+.
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.
TheStreet Ratings feels 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