Facebook Inc (NASDAQ:FB) stock slumped today after one analyst warned that it may not see any upside after the social network releases its next earnings report on Apr. 27. Shares fell by as much as 3.32% to $112.22 in afternoon trading. Meanwhile another analyst raised his price target for the stock to $150 per share.
FB stock price target to $150
Axiom analyst Victor Anthony said he bumped up his price target for Facebook Inc (NASDAQ:FB) stock from $145 to $150 per share, noting that the company’s opportunities lie in more areas than just social media. He argues that the stock should enjoy a premium multiple because the company is turning into the “world’s largest communications and entertainment platform.”
He expects video ads to become the biggest driver of Facebook’s core results this year and Instagram to add more than 6 points of incremental growth. Further, he notes that Facebook Audience Network is picking up and has a gross revenue run-rate of $1 billion, and all signs point to a monetization plan for Messenger at some point in the future.
Additionally, the Oculus VR headset is now out, and although it’s currently focused mostly on gaming, he sees plenty of other use cases for it, and he expects Facebook to look into monetization for WhatsApp after it reaches 1 billion users, which he said it should do this year.
No upside for Facebook (FB) stock until May
Deutsche Bank analyst Ross Sandler has a $145 per share price target on Facebook stock and expects it to fall below the record highs it has been enjoying recently right after the social network releases its first quarter earnings results on Apr. 27. The company’s stock tumbled earlier this morning after he said he doesn’t expect it to reach new highs until sometime later this spring or over the summer. His revenue growth estimate is $5.06 billion for the year, which is a little lower than consensus.
He is still optimistic on Facebook Inc (NASDAQ:FB) stock, however, as he expects the next few years to bring strong growth beyond the company’s main app. In fact, he doesn’t see many other names with as much growth potential for revenue beyond Facebook and suggests that investors buy any weakness that happens between now and the next earnings report later this month.