Facebook Inc (NASDAQ:FB) shares are continuing their rise today after the company’s solid earnings report earlier this week. As of this writing, the stock had risen 4.4 percent since opening bell. But is the social network’s future as solidified as it seems? It’s certainly a good sign that Facebook’s mobile revenue is solid, but some analysts are now concerned about the company’s flat desktop revenue.
Analysts at Credit Suisse issued a report to investors today, saying that they’re encouraged that Facebook Inc (NASDAQ:FB)’s mobile revenue jumped 22 percent sequentially. However, they’re concerned about the fact that its desktop ad revenue was flat year over year. They believe that this means the social network will continue to face challenges as it shifts over to mobile engagement.
Credit Suisse analysts did a complete analysis of Facebook Inc (NASDAQ:FB)’s results, which indicate that the network’s monthly active user count rose to $1.11 billion, a 5 percent increase quarter over quarter and a 23 percent increase year over year. Its daily active user count rose to 665 million. Monthly active mobile users were 751 million during the quarter. Credit Suisse analysts said all of these numbers surpassed their expectations.
In terms of advertising revenue, it grew 43 percent year over year, although the result was 6 percent below their forecast. Of the company’s ad revenue, 30 percent was from mobile, an increase from 23 percent in the previous quarter. They said the main revenue driver of the company’s advertising was an increase in the number of ads, which was 39 percent year over year. The company’s price per ad did increase 3 percent year over year after falling 4 percent in the previous quarter.
Facebook Inc (NASDAQ:FB)’s management said the modest increase in average ad price was because of the company’s expansion in emerging markets where the minimum ad price was lowered. Credit Suisse analysts said however, that it’s a good sign that U.S. and Canada ad pricing rose 25 percent year over year.
Facebook Price Target
Overall, they said that while Facebook Inc (NASDAQ:FB)’s first quarter results were “decent,” they maintain their $31 per share target price and neutral rating on the stock because they believe that the stock is already reflecting the near-medium benefits, both of mobile monetization and FBX.