De derde kwartaalcijfers van Facebook waren veel beter dan verwacht. Beursanalisten zijn extreem positief over het aandeel Facebook.
Facebook’s stock soared to an all-time high on Wednesday night after the company reported strong third-quarter earnings that beat analysts’ expectations.
The company released series after series of huge numbers during the earnings call, including the fact that Facebook now generates 8 billion video views per day, up from 4 billion reported in April.
Revenue was up 41% year-over-year to $4.5 billion, versus analysts’ expectations of $4.37 billion. Earnings per share at $0.57 beat analysts’ expectations of $0.52. And the company reported 1.55 billion monthly active users versus the 1.52 billion expected.
Predictably, analysts are extremely bullish about the company’s long-term prospects. We’ve rounded up a selection of some of the analysts’ notes sent out right after the Q3 earnings report.
Price target: $140
Comment: “Facebook reported another strong quarter that beat our above consensus estimates for revenue, EBITDA and EPS. Despite rising expectation on the back of strong results from the other large cap Internet names, FB showed cont’d acceleration in performance. F/X neutral growth of 51% overall (vs. 50% and 49% past two Qs) and 57% advertising growth (vs. 55% past two Qs) were both above expectations and even a bit higher than where we believe whisper numbers had settled.”
Wells Fargo: BULLISH
Price target: $135 to $140
Comment: “We view the evolution of social platforms as the most significant digital marketing development since the emergence of search, and believe Facebook’s audience scale, targeting capabilities, and social connectivity offer opportunity for marketers across the category, size, and regional spectrum. In short, we view marketer participation on the FB platform as compulsory, and expect FB to be the leading share beneficiary of funds flowing to social and mobile ad platforms.”
Credit Suisse: BULLISH
Price target: $135
Comment: “Once again the highlight was strength in Facebook’s mobile advertising business, but this time driven by contribution from Instagram, ramp of dynamic product ads (DPA) as well as continued strength in its existing app install and core mobile newsfeed ads. Management confirmed an early-2016 launch of the Oculus VR headset, which as we have recently cited in our report (“Passing Along the Revenue Generation Baton”, October 9 2015) - expect to contribute ~$2.1b in low- margin revenue for 2016. We continue to assume that Facebook will follow a razor/razorblades model and sell the Oculus hardware at a loss to drive adoption. As we believe Instagram is now starting to contribute more meaningfully to the P&L, we view these results as thesis-affirming as it is but one of a stacked product release slate that we have cited in our report (“Time to Rebuild Your Facebook Models — Raising to Outperform”, April 21 2014) and hence maintain our Outperform rating.”
Pivotal Research: BULLISH
Price target: $134
Comment: “Facebook reported another strong quarter with +41% revenue growth and strong profit expansion during 3Q15. With many levers of growth yet to be pulled, we continue to see many reasons to be increasingly optimistic. For Facebook as for Google, size begets more size given the improving capacity the company has to capture a growing share of marketer “wallets.” Our YE2016 price target is now $134 per share, up from $127 previously, and we continue to rate the stock Buy.”
Goldman Sachs: BULLISH
Price target: $125
Comment: “We believe that Instagram, ad format innovation like carousel ads, and the proven advertiser ROI of the Facebook platform are driving accelerating adverting revenue growth. We see strong momentum into 4Q15 given the holiday season and worldwide rollout of Instagram (versus 3Q15 having a limited rollout of one month). We reiterate our Buy rating and raise our 12-month price target from $110 to $125 (DCF, EV/EBITDA, and EV/FCF) as our estimates increase … We believe FB management may have quelled investor fears of an expense growth surprise in CY16 given commentary that Oculus’s virtual reality platform could take time to develop and might just sell hundreds of thousands of units in its first year.”
Price target: $125
Comment: “Another impressive beat driven by the soaring mobile business. We continue to see multiple meaningful go-forward growth levers in Instagram, video ads, the Facebook Audience Network, improved ad pricing, and WhatsApp. FB & Instagram account for an astonishing 5% of users’ total media time (including TV, etc.), yet FB doesn’t come close to capturing 5% of total ad budgets. We see a long runway for growth as time spent and ad spending converge.”
Deutsche Bank: BULLISH
Price target: $125
Comment: “The re-acceleration in ad revenue growth ex-fx is truly staggering for a company of Facebook’s size. We are modeling a comparable 56% y/y growth ex-fx in 4Q which could prove conservative. The only quasi- muted item was opex growth of 50% y/y despite lapping the LiveRail and Oculus acquisitions, and heavy SBC. The next hurdle Facebook faces is 2016 opex growth which we have at 49% Y/Y after adding in Oculus hardware (44% y/y ex. Oculus). We’ve raised 2016 revenue 8% and EPS by 12%. Facebook remains a top pick.”
Macquarie Research: BULLISH
Price target: $120
Comment: “The bottom line is that FB is executing exceptionally well, 4Q should be very strong,and we see limited potential negative drivers. While the commentary around near-term Oculus expectations was disappointing to us, investors will likely cheer the conservatism. Our price target and targets across The Street will go higher. Most importantly, Zuckerberg and his team have built a remarkable track record and we expect more and more investors to stick with this team for the long term.”
Price target: $120
Comment: “Facebook beat consensus revenue/adj. EBITDA/EPS by 3%/6%/10% in 3Q:15 and demonstrated continued strength in both audience and advertising growth ahead of its seasonally strong 4Q. We expect Facebook to face easier comps and easing FX headwinds in 4Q at the same time as several of its emerging ad products (Instagram, video ads, dynamic product ads, carousel ads) are starting to gain traction with advertisers that are traditionally big spenders over the holiday season.”
Raymond James: BULLISH
Price target: $120
Comment: “We reiterate our Outperform rating and increase our price target to $120 as we expect: 1) continued strength in user growth across platforms; 2) increasing advertiser demand and ad relevance to drive pricing; 3) increasing monetization from newer platforms (i.e., Instagram).”
Bank of America Merrill Lynch: BULLISH
Price target: $115
Comment: “The quarter had better user and revenue upside vs. 2Q, and suggests FB engagement is strong (65% of users check the site daily) and that the mobile transition remains a bigger tailwind for Facebook than any other large-cap. in the Internet media group. With the vast majority of Instagram monetization still ahead (we estimate a $5+bn opportunity) we think Facebook is in best position in sector to meet/beat street expectations.”
Pacific Crest: NEUTRAL
Rating: SECTOR WEIGHT
Price target: N/A
Comment: “Facebook posted good Q3 results. Revenue and operating income both beat our estimates. Price per ad beat our expectations with the launch of Instagram in the quarter. Solid results continue, but valuation and expectations prevent us from recommending FB over other names.”