The firm said Facebook's user engagement remains strong and Oppenheimer's checks have been upbeat. It also believes the debut of Instagram ads should help Facebook surpass expectations in the second quarter. It maintained an "outperform" rating on the shares.
Facebook also announced Monday that the 2014 World Cup in Brazil was the largest social media event ever with 350 million worldwide users engaged during the month-long sporting event. Reuters reports the users generated a record 3 billion posts, comments and likes.
The stock was up 2.03% to $67.68 at 10:14 a.m.
Separately, TheStreet Ratings team rates FACEBOOK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation."