Facebook Inc (NASDAQ: FB) earnings were a little overshadowed by those of rival Twitter Inc (NYSE: TWTR) on Thursday morning, but don’t let that fool you. The Silicon Valley giant’s shares are spiraling upward on Thursday after a blowout earnings report. There were upgrades across the board, and some are even calling for a $200 and over price target on Facebook shares.
That would set the firm’s market cap at well over $500 billion. The firm breached that psychological half trillion barrier at market open on Thursday morning. At time of writing shares were up by more than 5 percent to $174.64.
Here’s what Wall Street is saying about the firm’s massive quarterly release.
Wall Street aims high on Facebook stock
Lloyd Walmsley of Deutsche Bank set his price target on Facebook stock at $215. That was up from $189 previously. He says that the big catalysts for Facebook are coming to fruition. The firm keeps meeting and beating expectations while successfully managing investor hopes.
When Facebook Inc (NASDAQ: FB) reported earnings, according to Walmsley, it “struck an upbeat tone on video, Messenger, and Instagram.” It also delivered on any number of other metrics that excited stock buyers. Among those were user numbers.
The firm had 2.006 billion monthly users at the end of the second quarter. That’s up 3.4 percent from the first quarter of the year. Though user growth is slowing down at Facebook, it still has numbers Twitter Inc (NYSE: TWTR) can only dream of.
While the Deutsche Bank price target is unusually high, it’s may not stay the Wall Street top for long. Before earnings were announced the street high twelve month target was at $192. On Thursday it seemed that more than one research house would pt their target over $200.
Susquehanna was quick to follow Deutsche Bank with a $200 price target. We may see more dizzying heights as Thursday’s numbers sink in.
Walmsley also mentioned it was the “monetization narrative, likely opening the door to shares’ next leg up, in our view.” He wasn’t the only one that part of the earnings conference made an impression on.
Facebook Inc is beginning to monetize
The big takeaway in the BMO Capital report on Facebook’s earnings was the firm’s monetization of Messenger. That’s the massively popular chat service that the firm uses to complement Whatsapp. Daniel Salmon, who authored the report, isn’t even all that bullish about the company.
He has a Market Perform rating and a $170 price target on the stock. What he thinks is important, however, is the big move in Messenger. “While we believe it will take time to find the right formats and appropriate experiences for ads, the familiarity of FB’s ad platform to its 5mm advertisers will be vital,” he wrote.
Though the BMO price target has already been passed on Wall Street, it’s still a good sing. Before this morning’s earnings Salmon had a $150 price target on the firm. He’s cautious about Facebook’s future because of its high valuation.
Despite that, however, he’s willing to give credit to the firm when it’s due. On today’s market there’s sure to be a lot of people who wish they’d given Mark Zuckerberg’s firm credit right before it seemed due.