Facebook unequivocally said in April its launch of News Feed ads in 2013 will now cause future quarters' year-over-year growth rates to slow as comparable hurdles become more difficult.
"[We] continue to expect that over the rest of 2014 our year-over-year ad revenue growth rates will decline from the Q1 rate and be meaningfully lower by the end of the year," Facebook said.
In spite of cautious comments about future quarter results, Oppenheimer analysts increased their 2014 and 2015 revenue forecasts by 6% each and EBITDA forecasts by 7%. They reiterated a 12-18 month price target of $79 a share.
UBS said "Facebook has emerged as a co-leader with Google in global digital advertising (and increasingly advertisers are framing the issue that way to us)."
Bottom Line: Facebook is the big winner in the breakup of Omnicom and Publicis's merger. Investors might see that show up in coming earnings reports and management commentary.