Facebook (NASDAQ: FB) stock price gained close to 60% in the last twelve months amid trader’s confidence in its user growth and substantial revenue growth from ads. The market analysts are seeing further strength in ads in fiscal 2020, which could help its share price in gaining further upside momentum.
The robust financial performance in the third quarter and a strong outlook for the fourth quarter is adding to investor’s sentiments. Its shares breached $200 mark in 2019 while analysts expect shares to cross $300 level in 2020.
Analysts See More Than 30% Upside for Facebook Stock Price in 2020
Aegis Capital lifted the price target to $300 from $235 with a Buy rating. Its analyst Victor Anthony claims that the company will easily tackle regulatory and antitrust headwinds in 2020.
The analyst said, “FB’s continued strong user growth, continued share gains of global advertising, and progress on monetizing Messenger and WhatsApp.” Moreover, Victor Anthony expects stronger than expected performance in the final quarter of 2019.
In addition, Deutsche Bank provided a stock price target of $270, citing a strong year for ad spending in 2020. Its analyst is showing confidence in the eCommerce opportunity on Instagram.
Analyst Lloyd Walmsley said, “The strength to “extensive product work,” including newsfeed improvements, added video content and scaling Marketplace bodes well for future growth.”
On the other hand, BofA anticipates Facebook to outperform Alphabet in ads growth. The firm expects significant revenue growth for FB in fiscal 2020.
Previous Financial Numbers Indicates Uptrend
The company generated year over year revenue growth of 29% in the latest quarter, thanks to mobile advertising – which grew to 94% from a year ago 92%. The company has also been actively converting revenue growth into big profits. Its operating income rose 24% year over year in the latest quarter. The company plans to accelerate the revenue and earnings growth trend in fiscal 2020. Therefore, the Facebook stock price is poised to hit $300 in 2020.