Facebook (FB) Stock Gaining on Overseas Ad Sales Growth

NEW YORK (TheStreet) -- Shares of Facebook (FB) are gaining 2.33% to $82.55 in Wednesday's late morning trading session as company executives for the first time detailed overseas ad sales, revealing that growth in Asia is the fastest in the world, Reuters reports.

More than half of the company's global ad sales in the first quarter came from advertising revenue in overseas markets. Specifically, growth in Asia is the fastest in the world at 57%, according to Reuters.

"The next 1 billion consumers are going to come from these countries," said Carolyn Everson, VP of global marketing solutions at Facebook.

While the company has reported regional growth before, it has not detailed ad sales outside of the U.S. and Canada until now.

Going forward, the social media giant has its eyes on Asia, as it benefits from exporters in China trying to reach people outside its country and from an influx of venture capital funding into India, giving start-up funds for advertising, Reuters added.

Insight from TheStreet Rating's Team:

Facebook is part of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Here is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research-Action Alerts PLUS had to say about the stock in a recent alert:

This morning, Canaccord Genuity published a note on Facebook (FB:Nasdaq) detailing the stock's attractive valuation and future potential. While we don't typically rehash research notes, we found Canaccord's perspective especially interesting and in line with our views. More specifically, the note took a deep dive into the various revenue drivers supporting Facebook moving forward.

The accelerating growth in international markets (MAUs in Asia up 21% and rest of world up 15% y/y) will provide support, as North America and Europe slowly but surely begin to mature.

All in, we share Canaccord's sentiment and think shares are undervalued at current levels. As the company continues to find innovative ways to monetize its highly engaged user base, the stock will only become more attractive.

-Jim Cramer & Jack Mohr 'Facebook Is Currently Undervalued' Originally Published on 6/10/15 on Action Alerts PLUS.

Want more like this from Jim Cramer & Jack Mohr and more of Wall Street's sharpest minds BEFORE your stock moves? Learn more about Action Alerts PLUS.

Separately, TheStreet Ratings team rates FACEBOOK INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate FACEBOOK INC (FB) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: FB Ratings Report

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