The digital advertising market is dominated by two companies: Facebook (FB) and Alphabet's Google (GOOG) (GOOGL) . On November 2, investors will look to see whether the dominance from Facebook has continued and what the outlook is for all the important holiday season, as well as 2017.
Menlo Park, Calif.-based Facebook has become an advertising juggernaut, with the important metrics pointing in the right direction -- time spent, monthly and daily active users, return on investment and new advertising products all showing increases year over year.
JMP analyst Ronald Josey, who has a market outperform rating and a $165 price target on Facebook, says the Mark Zuckerberg-led company is the firm's top pick in the internet space, citing "multiple catalysts in the near term including newer ad products such as Dynamic Ads, Canvas Ads, video ads and Instagram, and longer-term catalysts around Messenger, Oculus, and WhatsApp."Since going public in 2012, Facebook has transformed itself, from a desktop-centric advertising company to one that gets more than three-quarters of its ad revenue from mobile. The company now has more than 4 million advertisers, a number that is rapidly growing. Facebook-owned Instagram is also ramping up its advertising platform, as the 500 million+ social network had more than 500,000 advertisers as of September, doubling from the prior six months.
In addition to Instagram, it also owns Oculus and WhatsApp, the popular messaging app that has over 1 billion users.