Facebook Inc has been generating positive views on Wall Street recently as bullish voices drown out the bears. However, a stock trader seems to be quite vocal about the bullish expectations on Facebook going forward. Trader Andrew Keene believes that Facebook could jump by as much as 15% within one month as the firm prepares to reports its Q3 2015 earnings on October 26. Keene’s bullish position on Facebook echoes the voice of the market bulls who believe that Facebook still has room to run.
Keene while speaking on CNBC’s “Trading Nation” opined that Facebook is still a strong bullish play despite the general weakness in the market. In his words, “the market is very weak; Facebook’s been weak over the last couple of days… I’m making a stance, right here today on Sept. 29th, 2015, that Facebook will hit $100 by Nov. 1st”. However, its 15% upside in one month depends on the quality of its Q3 earnings report.
Earnings has the power to move Facebook’s stock
The shares of Facebook have had a nice bull run in the last one year. The stock holds a 52-week high of $99.24 that it touched on July 24, it holds a 52-week low of $70.32 that it reached on August 24. In the last one year, the shares of Facebook have soared by 9.71%, it has gained 11.09% in the year-to-date, and it has 6-month gains of 4.05%.
July 29, Facebook revealed that it now has a Monthly Active User (MAU) base of 1.49B, which is more than the entire population of China and the stock jumped on the news. Fast-forward to Aug. 25, the firm revealed that one in seven people on earth used its platform to connect with friends and family – another jump. Two days later on Aug. 27, the firm revealed that its Daily Active Users (DAUs) has passed the 1B mark.
The trader who is betting that Facebook will reach a $100 trading price in the next one month posits that strong earnings could give the stock a push. He says, “If the market can turn around, Facebook can move higher. If it reports strong earnings, Facebook can move higher.”
Analysts are bullish on Facebook
The bullish analysts view on Facebook provides an insight into where Wall Street thinks the firm is headed. For instance, analysts at Cantor Fitzgerald have maintained their “Buy” rating on the stock. Analysts at JPMorgan & Chase also maintained their “Overweight” rating on the stock with a $118 price target. Analysts at Deutsche Bank have reaffirmed their “Buy” rating on the stock with a $115 price target. Analysts at Cowen have maintained their “Buy” rating on Facebook and they have set a $110 price target.